January 13, 2023

AMG Packaging Paper Company Limited (AMG), for the three months ended November 30, 2022, recorded a 6% decline in turnover to $254.27 million (2021: $270 million).

Total manufacturing costs for the period declined 8% to $180.78 million (2021: $196.08 million). Of this:

• Cost of inventories declined 13% to $135.96 million (2021: $155.99 million)
• Direct expenses increased 12% to $44.82 million (2021: $40.09 million)

As such, gross profit declined 1% to $73.50 million (2021: $73.92 million).

Total expense increased 54% to $43.89 million (2021: $28.56 million). Of this:

• Administrative expenses increased 19% to $26.42 million (2021: $22.16 million)
• Depreciation increased 67% to $10.16 million (2021: $6.10 million)
• Loss in exchange amounted to $2.50 million (2021: gain of $4.68 million)
• Directors fees remained fixed at $2.72 million
• Financial expenses declined 7% to $2.10 million (2021: $2.26 million)

Other income declined to $903 (2021: $236,321). As such, pre-tax profit declined 35% to $29.61 million (2021: $45.60 million).

Following tax charges of $4.97 million, (2021: $10.32 million), net profit declined 30% to $24.64 million (2021: $35.28 million).

Earnings per share (EPS) for the period amounted to $0.048 (2021: $0.069). The twelve-month trailing EPS amounted to $0.19. 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 13, 2023 at $3.20 with a corresponding P/E of 16.93 times.

Balance Sheet Highlights:

Total assets for the period increased 63% to $1.58 billion (2021: $971.39 million). This upward movement was primarily due to a 130% leap in the company’s ‘Property, Plant & Equipment’ which closed the period at $1.08 billion (2021: $468.40 million). ‘Inventories’ also contributed to the growth by a 54% increase to $317.67 million (2021: $206.77 million).

Shareholder’s equity for the period increased 88% to $1.21 billion (2021: $643.22 million) resulting in a book value per share of approximately $2.36 (2021: $1.26).

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