Despite lockdowns and curfews affecting productivity at AMG Packaging and Paper Company, the company has managed to remain profitable due to cost-containment measures.

The company cited a shortage in supply of paper and associated price increases as well as “dramatic increases in freight costs” as some of its main challenges during the year ended August 31, 2021

In fact, the auditor Bogle & Company outlined in key audit matters: “The company has assessed the impact of the recent coronavirus and its ability to continue as a going concern. In its evaluation, the company assessed its industry including its customer base in determining the potential future impacts.”

AMG’s revenue fell two per cent moving from $720.45 million in 2020 to $705.91 million. Profit after tax, however, improved by 7.8 per cent to $60.59 million.

According to Chairman Peter D Chin, “This improvement in net profit was attributed to tight cost control despite the fact that our productivity was severely affected by lockdowns and curfew hours.”

“Unstable supplies of paper on the world market and continuing paper price increases are a concern to the company,” he said in the company’s annual report.

To this end, management at the company are continuously monitoring the paper supply market and plans to take the appropriate actions to mitigate both the risks of paper shortage and price increases.

For the period under review, AMG Packaging and Paper Company’s manufacturing costs decreased by 6.75 per cent, moving from $538 million in 2020 to $500.60. Conversely, total expenses increases by 14 per cent to $142.78 million.

Chin believes that that completion of a new facility will augur well for its productivity.

“In January 2021, the company started construction of a 10,300-square-feet building at 12 Retirement Crescent, adjoining the existing factory building. Completion is expected before the end of 2021. This new facility will provide more storage space and help to significantly improve our productive activities,” he explained.