AMG profits in the box
AMG Packaging and Paper Company tripled its profit in the last quarter, after going public a year ago.
The company, which listed on the Jamaica Stock Exchange's (JSE) junior market in July, made $15.7 million in the three months to May 31, compared to $5.2 million in the comparative period last year.
"The increase in profits was due largely to an increase in production and the benefits of being a listed company on the Junior Stock Exchange," said Michael Chin, AGM's general manager.
"Listing on the JSE increased customer awareness of AMG Packaging," he said. AMG's initial public offering (IPO) raised over $50 million.
The capital was used to purchase a new property as well as assisting in the re-tooling of its factory on Retirement Crescent, Kingston.
The packaging company saw a $105.2 million increase in revenue, almost double the $79.4 million it made last year.
"Increased confidence and high customer service along with competitive prices also contributed to the increase in revenue," Chin said.
Expenses increased at the cardboard manufacturing company during the quarter under review. Among them was the cost of adding extra staff — it now has 67 — to handle the higher sales and the costs of the IPO and related promotional activities.
Manufacturing costs were up $80.2 million on the $62 million spent in the previous year's fourth quarter, including high electricity and fuel costs as well as the expense of updating and repair of equipment.
The company is now focusing on expanding its product line as well as growth and retooling machinery. The paper company is looking for growth in areas such as hand towels, napkins, bags and packaging supplies.
When AMG listed on the JSE, it had over 200 customers, now the company has doubled its clientele to 450.