Durrant Pate/Contributor

AMG Packaging & Paper Company has been hit with equipment downtime and lost production time, resulting in a sub-par performance during its February 2026 second quarter.

For the period under review, equipment downtime increased because of mechanical issues and lost production time associated with the installation and commissioning of the Glue Station and Single Facer on the Corrugator, which is a large industrial production line that combines paperboard (liner) and fluted paper to manufacture corrugated fiberboard sheets.

This occurrence weighed heavily on the company not being able to complete customer orders during the period. However, Managing Director George Hugh is confident that the upgrading of the Corrugator will allow for better efficiency and improved quality.

Revenue and profit performance

Revenues for the first half of its 2026/27 financial year contracted by 17.24%, moving from $500.95 million last year to $414.59 million. For the Three Months ended February 2026, revenues also went down 23.15%, moving from $248.32 million in 2025 to $190.84 million. 

Pre-tax profit for the half-year declined by 54.06%, moving from $61.88 million in 2025 to $28.43. For the Three Months ended February 28, 2026, profit contracted by 65.07% to $3.91 million coming from $7.39 million the year before.

Total manufacturing costs for the first half of the year went down 17.71%, moving from $335.13 million in 2025 to $275.77 million, while for the Three Months, the contraction was 25.13%, moving from $169.03 million in 2025 to $126.55 million. This resulted from a reduction in Direct Costs of Production, which is reflective of the decline in revenues.

Total expenses for the first half of the year inched up by 3.54% to $117.61 million, coming from $113.59 million. Total expenses for the Three Months ended February 28, 2026, went down by 2.94%, moving from $61.04 million to $59.25 million. 

With the upgrade of the Corrugator line, the management expects to feel the benefits within the current third quarter. “We are optimistic as we are now experiencing positive changes in our production processes. The positive outlook is expected to continue in the foreseeable future as our expansion plans are actively underway, “explained General Manager Hugh.