November 28, 2024
AMG Packaging & Paper Company Limited (AMG)
Audited financials for the year ended August 31, 2024:
AMG Packaging & Paper Company Limited (AMG) for the twelve months ended August 31, 2024, reported a 1% decrease in Revenue totalling $999.65 million compared to $1.01 billion in the corresponding period last year. Revenue for the fourth quarter had a 2% increase to close at $234.72 million compared to $230.27 million for the comparable quarter of 2023.
Total Manufacturing Costs amounted to $616.04 million (2023: $690.35 million), this represents a decrease of 11% year over year. Consequently, gross profit increased by 19% to $383.61 million compared to $321.76 million for the twelve months ended August 31, 2023. The company booked gross profit of $97.34 million for the fourth quarter versus $87.97 million reported for the similar quarter of 2023.
Administrative expenses increased by 4% to close at $134.39 million (2023: $128.65 million), while Depreciation increased by 25% from $42.60 million in 2023 to $53.09 million in the period under review. As a result, total expenses for the twelve months ended August 31, 2024, amounted to $202.60 million, a 12% increase relative to $180.97 million reported in 2023.
Operating Profit for the twelve months ended August 31, 2024, amounted to $181.01 million, a 29% increase relative to $140.79 million reported in 2023. Operating Profit for the fourth quarter amounted to $43.46 million (2023: $38.48 million). Other gains totalled $16.61 million, a 7,869% increase from the corresponding period last year. (2023: $208,484).
Pretax profit for the twelve months ended August 31, 2024, amounted to $190.65 million, a 43% increase relative to $133.00 million reported in 2023. Pretax profit for the fourth quarter amounted to $43.57 million (2023: $30.45 million).
Taxation for the twelve months ended August 31, 2024, had a 25% increase to reach $54.34 million (2023: $43.61 million). Net Profit for the twelve months amounted to $136.31 million, a 52% increase from the $89.39 million reported in 2023. For the fourth quarter, Net Profit was $29.12 million (2023: $14.75 million).
Consequently, Earnings per share for the twelve months amounted to $0.26 (2023: EPS: $0.17), while Earnings per share for the quarter totaled $0.06 (2023: EPS: $0.03). The number of shares used in these calculations was 511,894,285.
Notably, AMG’s stock price closed the trading period on November 28, 2024, at a price of $2.97 with a corresponding P/E ratio of 11.15x.
Balance Sheet Highlights
The company’s assets totalled $1.77 billion (2023: $1.64 billion). This increase was attributable to ‘Inventories’ which amounted to $252.16 million for the year end (2023: $156.05 million). Cash and Cash Equivalents also contributed to the increase equating to $360.52 million for 2024 (2023: $296.71 million)
Shareholder’s equity was $1.49 billion (2023: $1.41 billion), representing a book value per share of $2.92 (2023: $2.75).
Disclaimer:
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.
