AMG Packaging & Paper Limited Records Dip in Profits for Q2

  • For the year ended February 28, 2019, AMG Packaging & Paper Limited reported an unaudited net profit of $23.2Mn (EPS: $0.01) which represents a 12.4% decrease relative to the corresponding period of 2018.
  • Revenue for the period was $387.8Mn which represents a 12.8% increase relative to the $343.7Mn.
  • The lower profit was partly attributable to increased manufacturing costs which moved (+17.2%)  to $306.3Mn.
  • Paper prices have begun to stabilize on the world market, however, due to huge increases in paper costs in 2018, and the inability to pass on these increases to customers, the company’s bottom line continues to be negatively affected.
  • The stock has risen 21.05% since the start of the calendar year. AMG’s stock closed at $2.30 yesterday and currently trades at a P/E of 17.7x earnings which is above the Junior Market Manufacturing Sector average of 17.6x.

(Source: AMG Financials)