Profit at AMG Packaging surged 156 percent in the February quarter, to $18 million after tax from $7 million in 2021, even after suffering a loss on foreign exchange of $4 million versus a $4 million gain in the prior period. For the six months to February, profit jumped 150 percent to $53 million from $21 million in 2021.
The increase in profit follows moderate growth for 2021 over the previous year when the company posted $61 million after tax compared to $56 million in 2020.
Sale revenues rose 32 percent for the quarter, to $217 million from $165 million in 2021 and jumped 44 percent for the six months, to $487 million from $338 million in 2021.
The cost for inventories used in production increased slightly less than growth in revenues, with a rise of 30.5 percent in the latest quarter to $117 million compared to 2021, million ut cots rose faster than six months sales, after increasing 48.5 percent for the half year to $273 million. Direct costs rose well below the increase in revenues for both the quarter and six months, up just 10 percent to $38.7 million and 27 percent to $79 million for the six months.
Gross profit margin in the February quarter remained at 28 percent, similar to the 2021 half year and rose to 28.3 percent in the latest quarter from 24 percent for the 2021 quarter. Operating profit rose just 52.5 percent in the quarter to $61 million from $40 million and spiked 41 percent for the year to date, to $135 million from $93 million in 2021.
Administrative expenses rose 6 percent to $24 million in the quarter and 7 percent in the six months to $46 million. Depreciation increased to $7.6 million in the quarter from $6 in 2021 and $13.7 million for the six months from $12.3 million in 2021. The increased charge in the second quarter results from the addition to the factory and equipment for box production. The company will enjoy reduced production costs due to the new equipment that will replace an older machine. Finance costs declined in the quarter to $1.7 million, from $2 million in 2021 and $4.2 million to $3.6 million for the six months.
Taxation on profit moved from $919,135 in the February 2021 second quarter to $3.2 million in 2022 and for the half year, it jumped from $3 million to $13.5 million.
New addition to the AMG factory
Gross cash flow brought in $85 million. Increased working capital saw the amount falling to $52 million. Funds were reduced to $12 million after adding $26 million in fixed assets and loan payment of $10 million, thus pushing cash and equivalent on hand of $131 million at the start of the year, falling to $143 million at the end of February.
At the end of February, shareholders’ equity stood at $661 million, with long term borrowings at $99 million and short term at $13.5 million. Current assets ended the period at $509 million, including Inventories of $207 million, trade and other receivables of $150 million, and cash and bank balances of $143 million. Current liabilities ended the period at $188 million and resulted in net current assets ending at $321 million.
Earnings per share came out at 3 cents for the quarter and 10 cents for the year to date. IC Insider.com forecasts 35 cents per share for the fiscal year ending August 2022 and a 60 cents per share projection for 2023. The PE stands at 11 times the current year’s earnings and 6 times 2023 earnings based on the price of $3.70, the stock last traded on the Jamaica Stock Exchange Junior Market.
But Elite is not the only Junior Market stock posting solid gains. Jetcon rose 18 percent to close at $1.30, against a background of one or more investors seeking to buy a sizable number of shares. AMG Packaging and Caribbean Assurance Brokers climbed 16 percent while tTech added 7 percent to close the week at $4. Price movements in Main Market were more subdued than in the Junior Market, with JMMB Group the biggest mover dropping 11 percent from $51.89 to $46.25, followed by Guardian Holdings with a fall of 4 percent.
General Accident returned to the Junior Market TOP10 as tTech dropped out and VM Investments returns to the Top10 Main Market as Jamaica Stock Exchange fell out.
ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotional attachments to stocks that often result in costly mistakes.
The ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The trade means that Gooden, who previously owned a mere 242,230 or a fraction of one percent, will now own around 10 percent of the company, the third largest shareholder behind Excel with 85,231,108 units and NCB Capital Market with 66 million shares or 18 percent.
Scotia Group is ICInsider.com’s new stock for the future that comes into the Main Market ICTOP10 at number 9, with projected earnings of $4.47 per share as the group generates increasing income from the sharp hike BOJ induced hike in interest rates on investments.
ICTOP10 focuses on likely yearly winners; accordingly, the list may or may not include the best companies in the market. ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotional attachments to shares that often result in costly mistakes.
The PE Ratio, a measure used in computing appropriate stock values, averages 13.1 based on ICInsider.com earnings forecast for fiscal years ending August 2022 to August 2023.
At the close, Access Financial rallied $1.75 to $21.95, trading 960 shares, Blue Power popped 19 cents to $4.14, with 100 stock units crossing the exchange, Cargo Handlers rose $1.55 to close at $11.90 after exchanging 20 units. Dolphin Cove shed 25 cents in closing at $22.40, with 68,223 stocks changing hands. Elite Diagnostic dropped 42 cents ending at $2.57 with an exchange of 35,844,199 stock units, leaving 85 million units on offer to sell at $2.57 and 30 million on the bid at $2.50 to buy, with excel Investments that owned the largest block of 130 million seems the likely sellers. Fontana climbed 7 cents to close at $9.98 in an exchange of 59,545 stocks. Future Energy Source gained 13 cents to end at $6.15 in trading 873,959 units, Honey Bun advanced 65 cents to $10.15 after 25,781 shares crossed the market, Jamaican Teas increased 7 cents to $3.50 in an exchange of 251,535 units. 
Knutsford Express rose 54 cents in closing at $8 with the swapping of 740 shares, Lasco Financial increased 7 cents to close at $3.50, with 31,500 stock units clearing the market, Main Event declined 16 cents to $7.97 after exchanging 14,438 stocks. Stationery and Office Supplies advanced 8 cents in closing at $7.88 in trading 52,397 stocks, Tropical Battery fell 7 cents to $2.33 with the trading of 1,623,504 units and tTech lost 47 cents in ending at $3.73 in switching ownership of 147,314 shares.
