AMG reports 8% increase in year end net profits

November 26, 2021

AMG Packaging and Paper Company Limited (AMG) for the year ended August 31, 2021, recorded turnover in the amount of $705.91 million (2020: $720.45 million), a 2% decrease when compared to 2020. Turnover for the quarter rose by 5%, moving from $186.95 million in 2020 to $197.02 million for the period under review.

Total manufacturing costs amounted to $493.45 million, which represents a 7% decrease in comparison to the $530.95 million booked in the previous. Consequently, gross profit amounted to $212.46 million, 12% up from $189.50 million reported the prior year.

Administrative expenses rose by 2% to close at $95.86 million versus $93.85 million reported in 2020. Selling & Distribution Expenses totalled $8.40 million (2020: $8.26 million). Impairment loss amounted to $5.36 million (2020: $2.01 million). Conversely, Depreciation increased and close at $24.31 million (2020: $23.43 million).

Finance costs declined year over year by 3% to a total of $9.91 million (2020: $10.26 million).

Other income for the period totalled $460,671 relative to $9.71 million in 2020, a 95% decline year on year.

As such, profit before tax closed at $69.09 million for 2021, 13% more than the $61.40 million booked last year. Profit before tax for the quarter fell by 6%, moving from $28.48 million in 2020 to $ million. Taxes of $8.50 million was reported compared to a tax charge of $5.18 million in 2020. Net Profit amounted to $60.59 million compared to $56.21 million in 2020, an 8% improvement year over year.

Earnings per share (EPS) for the year amounted to $0.12 versus an EPS of $0.11 for 2020. The number of shares used in our calculations amounted to 511,894,285 units. AMG closed the trading period on November 25, 2021 at $2.28 with a corresponding P/E ratio of 19.26 times.

Management noted, “There were numerous challenges we faced throughout the year. The Covid-19 pandemic continues to affect our operations particularly the lockdown days and the curfew hours. The dramatic increased in freight cost as well as the shortage of paper on the world market, continues to drive up the cost of paper. AMG’s management team continues to monitor what is happening on the world and local markets.”

Balance Sheet Highlights:

As at August 31, 2021, total assets amounted to $906.11 million, compared to its value of $821.28 million a year ago, a 10% increase year on year. This increase was attributed to a 106% climb in ‘Inventories’ which amounted to $221 million relative to $107.43 million in 2020. The upward movement was tempered by a 50% decrease in ‘Cash & Cash Equivalent’ which totalled $130.57 million (2020: $259.29 million).

Shareholder’s Equity as at August 31, 2021 totalled $607.94 million (2020: $548.73 million) resulting in a book value per share of $1.19 (2020: $1.11).


Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.