AMG Packaging sees modest rise in annual earnings
Published:Monday | October 31, 2016 | 12:00 AM
Box maker AMG Packaging & Paper Limited grew annual net profit after tax to $83 million or 4.4 per cent higher year-on-year, despite challenges from its tissue segment.
Still, the company's outlook for the tissue operations remains strong despite setbacks from a fire that gutted a distributor of its products earlier in the year.
"AMG has continued its positive performance with an increase in key financial matrices for the twelve-month period," said AMG General Manager Michael Chin in a statement released with the fourth-quarter results ending August 2016.
The company posted earnings per share of $0.81 compared with $0.78 a year earlier.
Annual turnover dipped by $4.5 million to $628.7 million as at August 2016, but manufacturing expenses dipped at a faster rate. This allowed the company to post improved gross profit of $197.1 million, from $158.6 million a year earlier.
This resulted in improved segment results for its box factory operations, but the toilet paper factory recorded a loss of $40.6 million, according to the financial report.
"The unfortunate major disaster at our exclusive distributor of our Tishoo brand contributed heavily to the loss incurred at the toilet paper factory," said Chin.
During the 2015 financial year, the company invested in a toilet paper factory located at Orange Street in Kingston.
AMG started selling its first line of toilet tissues, Tishoo, in the third quarter ending May, but its distributor suffered a major setback, which curtailed the product's full roll-out. Additionally, in the third quarter, AMG had a breakdown of a machine used to make corrugated boxes.
"Even though the erratic movement of the US dollar continues and the harsh economic factors that hinders the manufacturing sector, we are confident of a continued bright future, especially with the prudent management of our financials," Chin said.
The junior market company reported a net book value of $421 million, up from $377.1 million a year prior.
AMG was incorporated in 2005 and operates from its Retirement Crescent box factory and Orange Street toilet paper factory, both in Kingston. The company's shares were listed on the junior stock market in 2011.