An underperforming toilet paper segment has resulted in a decline of 41 per cent in packaging and paper company AMG profits for its third quarter ending May 2017.

AMG, which makes three lines of tissue, diversified into tissue manufacturing in 2015 to supplement its core corrugated paper business.

The move was aimed at decreasing the importation of the products and to provide meaningful employment opportunities to assist in the growth of the Jamaican economy.

Although the company saw revenues increase by 5.12 per cent for the nine months period, moving from $463.31 to $487.01 million year over year, the company also saw increases in manufacturing costs, up $30.34 million from $320.62 million in 2016 and administrative expenses, which increased $13.2 million when compared to the previous year.

AMG also became eligible for income tax payment after completing its five-year tax-free period last May.

Earlier this year, Managing Director Michael Chin noted to shareholders that sales of the company’s toilet paper have not materialised as projected. He added that AMG had since put in place strategies to yield positive results, including the finalisation of supply to a major supermarket chain and vigorously expanding sales outreach efforts.

Still, the company’s anticipated uplift in sales within the third quarter and to reach a break-even point within this financial year.

AMG closed the nine months with cash and cash equivalents of $12.9 million, down from $62.8 million the company closed with a year earlier. The company now holds total assets of $637 million.

— Karena Bennett