AMG Packaging flushes loss-making tissue operation
Makers of boxes and paper products , AMG Packaging says it will discontinue its tissue production effective March 2018, due to a significant increase in losses from that segment of the business during the 2017 fiscal period.
During the current fiscal period the toilet paper segment reported a net loss of $39,720,297 marginally lower than the loss of $40,659,034 in the prior year, AMG shared in its financial statements.
“The company has decided, based on the current economic outlook and the non-realization of expectations of brand substitution and customer loyalty that they will cease operations of this segment in the 2nd quarter of the upcoming fiscal period,” according to the Michael Chin led company.
It appears that AMG had been making plans from as early as the year ended August 2016 to shutter production of the failing segment, with its financial statements indicating that there were no preliminary expenses for the production of toilet paper for the year ended August 2017 or the corresponding period.
For the year ended August 2017 the company reported $660.2 million in sales up from $628.6 million in the corresponding period of 2015.
Meanwhile, net profit for the period increased by 28 per cent, moving from $82.99 million for the year ended August 2016 to $106.4 million during the review period.
AMG makes three lines of tissue, Tishoo, Cottony and Plush.