Sun | Jun 7, 2020

AMG Packaging makes higher gains

Published:Monday | January 14, 2019 | 12:00 AM
Director Michelle Chin assists fellow director and company mentor Michael Fraser at AMG Packaging & Paper Company Limited's annual general meeting held at Retirement Road, Kingston, last year.

AMG Packaging & Paper (AMG), the cardboard paper maker, released its first set of improved financials from core operations following its disposal of its toilet tissue business.

The company reported earnings of $0.03 per share for its first quarter ending November 2018, which was 50 per cent higher than the $0.02 a year earlier. The company made $0.07 per share for its full 12 months ending August 2018.

AMG still battles with rising costs, but less so in its first quarter when compared with a year ago.

''The cost of inventories continues to have a negative impact on our bottom line, as we have not been able to recoup from the dramatic increases on paper prices we encountered throughout last year," stated George Hugh, managing director at AMG, in the financials.

It follows the divestment of its toilet tissue business nearly a year ago. Rising raw material costs have plagued the rise in its earning over the period. And while costs continued to rise, it did so at a slower pace than a year earlier, which allowed the company to record higher profit.

Specifically, the company made $214 million in revenues for the quarter, or 11 per cent higher than a year earlier. Manufacturing costs increased 11 per cent. The company earned net income of $18.4 million versus $11.1 million a year earlier.

The cashflow and equivalents at the company totalled $51 million, compared to $44.7 million a year earlier.

The company also booked $10 million as a deposit for the acquisition of property at 12 Retirement Road, St Andrew.

Total assets equated to $699 million versus $709.2 million a year earlier. The reduction in assets was attributable to the divestment of its toilet tissue business. Total capital equated to $471 million versus $494 million a year earlier.

AMG exited the tissue business in early 2018, terminating the production of its three local brands of tissue - Tishoo, Cottony and Plush. The company was unable to gain critical market share amid competitors from Jamaica, Trinidad, and the United States of America.

AMG was incorporated in 2005 and operates from its Retirement Crescent,

St Andrew, box factory and Orange Street toilet paper factory in Kingston. The company's shares were listed on the Junior Market of the Jamaica Stock Exchange in 2011.