Despite a decline in sales and profits last year, cardboard manufacturer AMG Packaging Limited is entering its 2026 financial year buoyed by confidence in the company’s strategic direction and the growth opportunities ahead.

The cardboard box maker remains bullish on its expansion plans, having laid critical groundwork over the past three years. This has included the acquisition of land, expansion of warehousing capacity, upgrades to its Enterprise Resource Planning (ERP) system and the engagement of advisory services to guide capital investments. Much of this work progressed significantly during 2025, positioning the company to begin reaping the benefits in 2026.

“Our buoyancy and excitement come from the fact that we have moved significantly down the wicket on our expansion plans,” Chairman Metry Seaga said in the company’s recently published annual report.

Having identified the appropriate building, equipment and personnel, Seaga said plans have now been activated to ensure the expansion project commences in 2026. The expansion, expected to be a game changer, will introduce state-of-the-art equipment and advanced technology while significantly enhancing operational efficiency, product quality and customer value.

These improvements, Seaga said, will position the company to better serve its diverse client base scattered across the food and beverage, agriculture and industrial packaging industries.

“This expansion project will take AMG to new heights. With the latest equipment, technology and ERP systems, this will enable us to offer our customers better value for their money in all cases,” he told shareholders in the report.

For the year ended August 31, 2025, AMG recorded revenue of $973.4 million, representing a 3 per cent decline from the previous year, while profit fell by 30 per cent to $95 million. Management explained that the reduction in profits was largely driven by professional fees and advisory costs associated with the company’s expansion initiative. The modest decline in revenue was also attributed to increased equipment downtime and lower production output during the fourth quarter of 2025.

Despite these short-term pressures, AMG continues to demonstrate disciplined operational management. Inventory turnover remained steady at an average of three times per annum for both 2024 and 2025, reflecting effective stock control and sound working capital management.

“It is not often that a company experiences a decrease in sales and profit and its board of directors feels buoyed at the direction and opportunities that await,” Seaga said.

Currently holding approximately 20 per cent of the local market for cardboard boxes and paper, AMG sees significant room for expansion. As such, the board remains steadfast in its intention to secure a much greater share of the market, even as it maintains its goal of doubling revenues by 2027.

“It remains the intention of the board to secure a much greater share of the market that we are in with this new venture. Our board remains steadfast in AMG becoming the leading player in the segment,” Seaga said.

Alongside its growth initiatives, the company continues to proactively manage risk. Key areas under assessment include upgrades to the corrugator line to improve sheet quality and capacity expansion to meet rising demand, strengthened succession planning for critical operational roles, enhanced health and safety protocols and mitigation of external risks such as climate change and geopolitical disruptions through diversified sourcing strategies.

As the box maker enters 2026 and its narrative shifts from short-term financial pressure to long-term opportunity, management said its continued focus on accelerating operational efficiency will guide future growth, supported by a strong balance sheet and a clear strategic direction.

“AMG’s statement of financial position remains strong. The value of our cash and short-term investments total approximately $419 million as at August 31, 2025,” the chairman noted.

SEAGA…our buoyancy and excitement come from the fact that we have moved significantly down the wicket on our expansion plans