Date: January 14, 2018
AMG Packaging Paper Company Limited (AMG), for the three months ended November 30, 2018, recorded Turnover in the amount of $213.92 million, a growth of 11% when compared to $192.88 million the previous year.
Cost of Inventories totaled $130.20 million, an increase of 13% relative to the corresponding period in the prior financial year of $115.35 million. Direct Expense climbed year over year by 2% to $36.04 million (2017: $35.17 million). Total Manufacturing Costs for the first quarter amounted to $166.25 million, 10% higher than the $150.53 million reported for the first quarter of 2017. As such Gross Profit amounted to $47.67 million (2017: $42.35 million).
The company reported that “Cost of inventories continues to have a negative impact on our bottom line as we have not been able to recoup the dramatic increases on paper prices we encountered throughout last year.”
Administrative Expenses grew by 2% to close at $20.06 million (2017:$19.76 million), while Depreciation fell 32% to $4.96 million (2017: $7.30 million). Finance Expense for the period declined to $1.37 million, 44% lower than the $2.43 million booked for the first quarter of 2017. Directors Fees for the period amounted to $3.37 million (2017: $2.60 million).
As such, pre-tax profit closed at $17.91 million, 75% greater than the $10.26 million reported for the first three months ended November 30, 2017. Following tax charges of $2.30 million (2017: $1.54 million). Net profit amounted to $16.11 million, a 69% increase relative to net profit of $9.55 million in 2017.
Earnings per share for the period amounted to $0.03 (2017: $0.02). The twelve month trailing LPS amounted to $0.09. The number of shares used in our calculations amounted to 511,894,285 units. Notably, AMG’s stock price closed the trading period on January 14, 2018 at a price of $1.95.
Balance Sheet Highlights:
As at November 30, 2018, Total Assets amounted to $698.84 million, 1% less than the $709.15 million a year ago. This was due to a 15% decline in the company’s Property, Plant & Equipment which closed the period at $323.76 million (2017: $381.82 million). However, this was offset by the increase in AMG’s Inventories to total $193.84 million (2017: $157.18 million).
Shareholder’s Equity as at November 30, 2018 totaled $470.94 million (2017: $494.23 million) resulting in a book value per share of approximately $0.92 (2017: $0.97).
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