Paper manufacturing company AMG Packaging is reviewing its processes and completing the integration of a new enterprise resource planning (ERP) platform following a slight dip in its revenues for 2024.

“We are continuing to upgrade and expect to have even more efficient equipment in place by the middle of next year,” non-executive chairman of AMG Packaging Metry Seaga advised shareholders in the company’s annual report.

“Our new ERP system is being integrated and being run in parallel and we expect it to be in full flow before the end of the 2025 financial year,” he continued.

Seaga further divulged that the company has engaged a business consulting team to assess the feasibility of a full-scale expansion plan, with a final report due in the first quarter.

“AMG is on a solid path and we are confident that with the current systems, employees, management and board, we will continue to thrive and be a substantial player in this market,” the chairman stated.

For the year ended August 31, 2024, revenues dipped by 1.23 per cent, moving from $1.01 billion at the 2023 year-end to $999.65 million.

AMG managed to reduce its manufacturing costs to by 10.76 per cent to $616.04 million, down from $690.35 million.

“This movement is mainly due to the increase in efficiencies in our production processes,” the management discussion and analysis (MD&A) in the annual report read.

Despite upward movement in total expenses, there was a 43.34 net increase in net income before tax, as for 2024 the company earned $190.648 million compared to $133.002 million in August 2023.

Depreciation and administrative expenses were the main drivers of the jump in total expenses.

The MDA in the annual report further revealed several initiatives to improve the company’s efficiency.

For instance, the company faces the challenge of producing enough sheets to meet the growing demands of automatic and semi-automatic conversion machines on its corrugated line. To this end, AMG Packaging has engaged an alternative supplier of corrugator spare parts due to the permanent closing down of the original corrugator manufacturer.

The new ERP system being integrated into the company will become the “single accurate source of data for the entire organisation” by providing real-time information, thus reducing administrative and operational costs.

Regarding manpower, AMG Packaging has created a training plan for ERP system implementation. Additionally, it has enforced a late policy to reduce man-hours loss.

At the same time, the manufacturing outfit has strengthened cyber security efforts through the sensitisation of administrative staff on data protection, access and storage of information on the local computer network and on the internet.

On the company’s balance sheet, total assets increased to $1.77 billion, up from $1.63 billion, on the back of increases in property, plant and equipment; inventory; and cash and cash equivalents.

The cash position improved by 21 per cent, increasing from $296.71 million to $360.52 million.

According to the annual report, “Inventories showed an increase of $96.12 million over 2023 mainly due to the Raw Materials shipments close to year end.”