AMG Packaging adds new brands to tissue line
AMG Packaging & Paper Limited now makes three lines of tissue which augment its core corrugated paper business.
The market appears bullish on the direction of the business, as the AMG stock is now priced at roughly 30 times earnings or about double the average of the junior stock market.
"We have three brands now Tishoo, Cottony and Plush. All three brands are owned by AMG," said General Manager Michael Chin on Tuesday.
AMG began making the Cottony and Plush brands three months ago, and is working on the distribution of the new products.
"We are trying to find another distributor or try to sell them ourselves, we are out there speaking to distributors and to supermarkets," said Chin. "We are engaged in that whole process to see exactly how we are going to target these brands."
AMG started making its first line of tissue, Tishoo, in 2015 and subsequently hired Wisynco as distributor.
AMG revenues actually dipped nearly one per cent lower to $629 million for the year ending August 2016. Net profit, however, grew 4.3 per cent to $83 million year-on-year. Revenue projections from the expanded tissue paper line were not forthcoming up to press time.
AMG posted earnings of 81 cents for year ending August 2016, up from 78 cents in 2015. The stock is currently trading at $28.50, which is triple the price it was trading at a year ago.
AMG's newly released annual report indicates that management remains focused on growing the company.
"We continuously seek support from our local manufacturers, as this is the key to growth for both AMG and the country's manufacturing sector. AMG is committed to building Brand Jamaica, and we ask everyone to support efforts in doing so," the report said.