AMG Packaging is now in expansion mode, as it builds out its 12 Retirement Crescent, Kingston 5 property amid a relatively soft quarterly performance.
The company is moving full speed ahead with the build out of the property having been given the go-head from the Kingston and St Andrew Municipal Corporation (KSAMC), which has approved the architectural drawings for the development of the property. The development will be an expansion to AMG Packaging current base located at the adjoining 10 Retirement Crescent.
AMG Packaging, which was incorporated in September 2005, manufacturing cardboard boxes for the manufacturing sector, acquired the property in 2018 when it was the home of Action Chemical and Equipment. Action Chemical and Equipment was a manufacturer of specialty chemicals for more than 20 years.
AMG Packaging Chairman, Peter Chin says the development of the new property will allow the company to expand its operations and to better serve its customers. The board of AMG Packaging has already identified a contractor to undertake the work and has agreed with the company to undertake the project. It has been reported Proven Wealth Limited is to finance the development of the property. AMG’s decision to acquire the additional property comes months after the company offloaded the loss-making toilet paper business. Since then the company has been focussing on strengthening its core box-making business, which looks more promising with the ban on plastic.
Latest quarterly performance
In its latest quarterly report for the period ended November 30, 2019 revenues were down 10.4 per cent, moving from $213.92 million in 2018 to $191.6 million for the period under review. At the same time, gross profit inched up by 3.33 per cent to $49.25 million during the current quarter coming from $47.66 million for the same period in 2018. Total manufacturing cost for the first quarter ended November 30, 2019 was down 14.38 per cent from $166.25 million in November 2018 to $142.35 million for the period under review. Administrative expenses were down 11.42 per cent while net income for the 12-month period was down 9.7 per cent moving from $16.45 million to $14.48 million