AMG Packaging considering expansion to double revenues
Published:Friday | January 3, 2025 | 12:10 AM
AMG Packaging and Paper Company Ltd has hired a consulting team with the aim of doubling its revenue in the medium term.
That would equate to some $2 billion a year.
“We expect to have a final report in the first quarter of the coming year,” the company’s chairman Metry Seaga stated in its annual report published recently.
“The plan is to double revenues by 2027 as per Simply Advisory,” said Seaga in response to Financial Gleaner queries about Simply Advisory Limited, a consulting firm that addresses business challenges to foster client growth.
AMG holds a 20-per-cent chunk of the market in the islandwide supply of cardboard boxes and paper. One area of insight involves exports. Seaga said the company does not export currently, but its customers export their products in its boxes.
Annual pretax profits rose by 43 per cent, from 133 million to $190.5 million in the year ending August 2024. Revenue was, however, flat year on year at $999.6 million in 2024.
Meanwhile, total manufacturing costs decreased by 10.8 per cent moving from $690 million in 2023 to $616 million in 2024. This movement is mainly due to the increase in efficiencies in our production processes, the company said.
“The company was able to purchase raw material more economically and get the benefit of new machinery increasing productivity. We are continuing to upgrade and expect to have even more efficient equipment in place by the middle of next year,” the chairman stated.
Gross profit jumped by 19 per cent of the year from $321.8 million in 2023 to $383.6 million in 2024.
The Kingston-based AMG makes cardboard boxes for a number of local and international partners including Wisynco, National Bakery, Benjamin’s and Seprod to name a few.
Meanwhile, AMG’s cash equivalent increased 21.5 per cent to $360.5 million compared to $296.7 million a year earlier.