Published:Wednesday | October 25, 2023 | 12:06 AM
AMG Packaging & Paper Company hit a new milestone in revenue at year ending August, its preliminary financial results show.
But it came amid narrow growth in annual sales turnover of less than two per cent and a depressed fourth quarter in which both sales and profit declined.
“AMG continues on its recovery path and we are happy in our ability to have reached $1 billion in revenues,” said Managing Director George Hugh in the preface to the financial results third quarter results.
Improved supply and price of paper rolls drove the corrugated box manufacturer’s production costs down by one-fifth over the quarter ending August. But General Manager Michael Chin is still cautious in his outlook on business, at least for the remainder of the year, noting in a response to queries from the Financial Gleaner that paper prices are still fluctuating, based on the availability of the products from the mills.
“There is some expectancy that prices will become more stable by the start of the new year,” he said.
For nigh of three years, box makers have been faced with a shortage of cardboard, supply details and higher prices. AMG’s remedy involved ramp up production on specific items, engaging with clients about product delays and a widening of its supply base. Recently, the company also doubled its factory space with the commissioning of a new plant.
Paper prices have been trending down but other issues continue to bedevil the paper market.
“Since the COVID outbreak, we have been purchasing paper rolls from three to four additional suppliers, but it is still a challenge to get paper rolls,” said Chin.
Despite the improvements in production costs in the August fourth, which declined from $183 million to $152 million year on year, the manufacturing company’s earnings still dipped by 22 per cent to $19.2 million due to lower sales turnover in the three-month period. Quarterly revenue shrunk to $230 million from $257 million.