AMG Packaging and Paper slashed its costs to paper thin levels which resulted in it posting big profit.
Investors rewarded the company on its steady improvement and inched up shares to $3.32 or 10 per cent higher year to date.
The papermaker made $100 million in profit for the February 2024 second quarter which rose 61 per cent over the previous year.
Revenue increased 1.0 per cent to $250 million, but the company really benefited from the 12 per cent cost savings related to manufacturing expenses during the quarter. Gross profit for the quarter was $96 million, up from $72 million in the prior year.
“We continue to reap the benefits of our new machines resulting in the reduction in manufacturing costs,” said managing director George Hugh in the financial results.
AMG is valued at $1.7 billion in assets with debt at $390 million which results in capital of about $1.3 billion.
It is trading slightly above its book value with its value on the stock market at $1.7 billion in market capitalisation.
