Date- April 8, 2019
AMG Packaging Paper Company Limited (AMG) for the six months ended February 28, 2019 recorded Turnover in the amount of $387.70 million, a growth of 13% when compared to $343.66 million the previous year. Turnover for the quarter increased 7% to total $173.78 million relative to $162.54 million the prior year’s quarter.
Cost of Inventories for the period totaled $233.42 million, an increase of 18% relative to the corresponding period of $198.11 million. Direct Expense climbed year over year by 15% to $72.83 million (2018: $63.19 million). Total Manufacturing Costs for the period amounted to $306.25 million, 17% higher than the $261.30 million reported for the corresponding period in 2018. As such Gross Profit for the period amounted to $81.45 million (2018: $82.36 million). Gross profit for the quarter amounted to $33.82 million, a 1% increase on the $33.56 million reported for 2017.
Administrative Expenses declined by 1% to close at $39.69 million (2018:$40.16 million), while Depreciation rose 10% to $9.91 million (2018: $8.99 million). Finance Expense for the period increased to $2.41 million, 10% higher than the $2.20 million booked for the corresponding period in 2018. Directors Fees for the period amounted to $7.33 million (2018: $6.25 million).
As such, pre-tax profit closed at $22.11 million, 11% lower than the $24.76 million reported for the first six months ended February 28. 2018. Following tax charges of $2.90 million (2018: nil), Net profit amounted to $20.32 million, a 23% decline relative to net profit of $26.52 million in 2018. Net profit for the quarter totaled $4.30 million relative to $3.33 million reported in 2017.
The Company noted, “ Although paper prices appear to have stabilized on the world market, the dramatic increases we encountered throughout last year continue to negatively affect out bottom line due to the fact that we have been unable to pass on all the increases to our customers.”
Earnings per share for the period amounted to $0.04 (2018: $0.05) while earnings per share for the quarter amounted to $0.01 (2018:$0.01). The twelve month trailing EPS amounted to $0.06. The number of shares used in our calculations amounted to 511,894,285 units. Notably, AMG’s stock price closed the trading period on April 8, 2019 at a price of $2.30.
Balance Sheet Highlights:
As at February 28. 2019, Total Assets amounted to $631.62 million, 3% less than the $698.24 million a year ago. This was due to a 16% decline in the company’s Inventories which closed the period at $128.73 million (2018: $120.18 million). However, this was offset by the increase in AMG’s Property, Plant and Equipment to total $318.82 million (2018: $374.65 million).
Shareholder’s Equity as at February 28. 2019 totaled $475.15 million (2018: $475.23 million) resulting in a book value per share of approximately $0.93 (2018: $0.93).
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.