Turnover for the year was down 2% to $705.91 million

AMG Packaging and Paper Company Limited is reporting an eight per cent rise in year-end net profits amounting to $60.59 million compared to $56.21 million in 2020

The Jamaica-based company, for the year ended August 31, 2021 recorded profit before tax of $69.09 million for 2021, which was 13 per cent more than the $61.40 million booked last year. For the year in review turnover amounted to $705.91 million, which was a two per cent decline over the $720.45 million book for the same period in 2020.

Turnover for the last quarter rose by five per cent, moving from $186.95 million in 2020 to $197.02 million for the period under review. Total manufacturing costs amounted to $493.45 million, which represents a seven per cent decrease in comparison to the $530.95 million booked in the previous.

Modest rise in admin expenses

Consequently, gross profit amounted to $212.46 million, 12 per cent up from $189.50 million reported the prior year. Administrative expenses rose by two per cent to close at $95.86 million versus $93.85 million reported in 2020.

Selling & Distribution Expenses totalled $8.40 million, slightly up from the 2020 posting of $8.26 million. Impairment loss more than doubled to $5.36 million coming from $2.01 million in 2020.

Conversely, depreciation increased and close at $24.31 million, up from the 2020 booking of $23.43 million. Finance costs declined year over year by three per cent to a total of $9.91 million, down from the $10.26 million posted in 2020.

Other income for the period totalled $460,671 relative to $9.71 million in 2020, a 95 per cent decline year on year. As at August 31, 2021, total assets amounted to $906.11 million, compared to its value of $821.28 million a year ago, a 10 per cent increase year on year.

This increase was attributed to a 106 per cent climb in ‘Inventories’ which amounted to $221 million relative to $107.43 million in 2020. The upward movement was tempered by a 50 per cent decrease in ‘Cash & Cash Equivalent’ which totalled $130.57 million (2020: $259.29 million).

Numerous challenges throughout the year

In its commentary on the year’s performance, the management reports that “there were numerous challenges we faced throughout the year”.

The management added: “The COVID-19 pandemic continues to affect our operations particularly the lockdown days and the curfew hours. The dramatic increased in freight cost as well as the shortage of paper on the world market, continues to drive up the cost of paper.”

However, AMG’s management team continues to monitor what is happening on the world and local markets.