AMG reports 89% increase in nine months net profit

July 15, 2022

AMG Packaging & Paper Company Limited (AMG) for the nine months ended May 31, 2022 reported a 45% increase in revenue to $738.38 million (2021: $508.89 million). Revenue for the quarter increased by 48% to $251.57 million relative to $170.49 million reported the previous year.

Cost of Inventories increased by 55% for the period to $415.17 million (2021: $267.69 million). In addition, direct expenses increased by 37% to $124.59 million (2021: $91.05 million). As a result, gross profit rose year-on-year for the nine months by 32%, from $150.16 million in 2021 to $198.62 million in 2022. Gross profit for the third quarter improved from $57.60 million in 2021 to $63.64 million, a 10% increase year over year.

Total expenses decreased by 1% for the period in review to $105.01 million, down from $105.91 million booked for the nine months ended May 2021. The decrease was attributed to a 7% increase in administrative expenses to $69.30 million from $64.54 million in the same period last year.

Depreciation saw an increase of 18% to $21.63 million compared to $18.38 million for the comparable period in 2021. Directors Fees increased to $8.72 million and Disposal of fixed assets was nil for the year ended May 2022 (2021: $3.97 million). Additionally, financial expenses declined by 15% to $5.26 million from $6.20 million booked in 2021. Total expenses for the quarter increased 5% to close at $36.10 million (2021: $34.42 million).

Other income, for the nine months ended May 31, 2022, amounted to $286,515 (2021: $4.35 million).

Consequently, profit before tax for the period rose by 95% to $93.89 million (2021: $48.59 million). However, profit before tax for the quarter totalled $27.55 million, which increased by 13% relative to $24.33 million booked for the corresponding quarter of 2021.

The Company incurred tax expense of $13.49 million for the nine months relative to $6.01 million for the corresponding period of 2021. Net profit amounted to $80.40 million, a 89% increase above the $42.59 million recorded for the corresponding period in the prior year. Net profit for the quarter amounted to $27.55 million versus $21.30 million booked for the comparable period in 2021, a 29% increase.

As such, total comprehensive income for the nine months ended May 2022 closed at $80.40 million relative to an income of $42.59 million in 2021.

Earnings per share (EPS) for the nine months totalled $0.157 relative to an EPS of $0.082 booked twelve months prior. Earnings per share for the quarter amounted to $0.054 compared to an EPS of $0.042 recorded in the prior comparable period. The trailing twelve months EPS amounted to $0.19. The number of shares used in the calculation was 511,894,286 units. Notably, AMG’s stock price closed the trading period on July 14, 2022 at a price of $4.82 with a corresponding P/E of 25.07 times.

Balance Sheet Highlights:

The Company, as at May 31, 2022, recorded total assets of $978.47 million (2021: $812.25 million). Notably, ‘Cash & Cash Equivalents’ as at May 31, 2022 amounted to $151.20 million (2021: $143.07 million). ‘Property, Plant and Equipment’ increased to $491.30 million (2021: $361.53 million).

Total Stockholders’ equity as at May 31, 2022, closed at $688.35 million (2021: $591.31 million); this resulted in a book value of $1.34 (2021: $1.16).




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