AMG Packaging and Paper Company Limited’s profit has fallen by more than half in the latest quarter as its production faltered.
Management, however, remains upbeat and continues with its expansion plans.
Net income before tax for the third quarter ended May 2026 was $21.2 million, down from $49.8 million for the corresponding quarter the year before, a decrease of 57 per cent. For the nine months leading up to May, the decrease in net income before tax was 67 per cent, moving from $111.7 million to $36.2 million.
“We are very mindful of the fact that the profits are down, but we are holding our own and we’re still profitable, which is good,” said Chairman Metry Seaga told the Financial Gleaner on Monday. “I wouldn’t say that we are worried or concerned,”
Managing Director George Hugh, in the company’s management discussion and analysis (MDA), said its net income performance resulted mainly from the 15 per cent reduction in sales revenue partially resulting from the 42 per cent decline in production units, due to the challenges experienced with the corrugator downtime.
The company makes a range of carton boxes for the manufacturing sector.
Hugh also indicated that the expansion and relocation programme is still in the works.
“As we move closer towards the expansion and relocation of our factory, we have made some strategic decisions which will allow us to alleviate some of the issues associated with our current production levels,” Hugh said in the management discussion and analysis (MDA).
The MDA stated that installation and commissioning of the additional corrugator parts in the second quarter presented unexpected challenges which negatively impacted operations in the third quarter.
“We projected to complete the unfulfilled orders which were impacted by the aftermath of Hurricane Melissa, but the challenges we encountered prevailed…Despite the issues we faced, we managed to fulfil more than 70 per cent of the orders we received within the quarter, which still resulted in a profitable position,” the MDA said.
Seaga confirmed that the company intends to move from its current location that it has outgrown at Retirement Crescent in Kingston, but declined to give a timeline.
“I don’t want to go into too much detail now…but we are looking at completely new equipment right throughout the plant, and then possibly moving into a bigger facility,” Seaga said.
