Source: SECOS
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • Biopolymer producer SECOS Group (SES) has released its September quarterly report, showing it recorded a 19.3 per cent increase in sales year-on-year
  • Its biopolymer products performed even better, with sales increasing 75.8 per cent this quarter compared to the same time in 2019
  • SECOS ended the September quarter with over $16 million worth of cash in the bank, having burnt through around $850,000
  • Looking ahead the company expects demand for its core products to grow, as more people switch to biodegradable bags
  • Shares in SES have ended the day up 10.3 per cent, worth 16 cents each

SECOS Group (SES) has released its September quarterly report, showing it recorded a 19.3 per cent increase in overall sales year-on-year.

The results

The company’s sustainable biopolymer products were the star performers — with sales increasing 75.8 per cent this quarter compared to the same time in 2019.

Looking at the product’s quarter-on-quarter results, SECOS said sales increased by 25.4 per cent to make up more than half of all of the group’s sales.

The growth in sales comes after the company launched its MyEcoBag range in 86 Woolworths stores across Australia.

SES said the compostable bags have so-far outperformed internal Woolworths targets.

Financials & outlook

Cash-wise, SECOS ended the September quarter with just under $16.4 million worth of cash in the bank.

Its bank balance was bolstered by the $15 million capital raise undertaken in early September.

The company burnt through around $855,000 on operating activities during the period, with most of that going towards product manufacturing costs.

Looking ahead, SECOS CEO Ian Stacey said he expects demand for its core products to continue to grow as more people switch to biodegradable bags.

“We are seeing more councils tendering, with the intention to adopt Food and Organic Waste diversion programs which utilize compostable bags to capture
kitchen food waste destined for organic waste collection,” he said.

In response to the demand, SECOS has already announced it will increase its resin making capacity to keep up with the growth.

Shares in SES have ended the day up 10.3 per cent, worth 16 cents each on October 28.


SES by the numbers
More From The Market Online

CSIRO launches CarbonLock in bid to tackle climate change

Australia's national science agency, CSIRO, has launched CarbonLock, a $20 million research program aimed at creating…
The Market Online Video

Scidev (ASX:SDV) promotes Seán Halpin to permanent CEO

Environmental solutions company, Scidev (ASX:SDV) has appointed Seán Halpin as its permanent Chief Executive Officer.
The Market Online Video

Lithium Australia’s (ASX:LIT) Envirostream receives first cash rebate for B-cycle scheme

Lithium Australia's (ASX:LIT) subsidiary, Envirostream Australia has received its first cash rebate for the B-cycle scheme.

Worley (ASX:WOR) awarded contract for Swedish renewable methanol facility

Worley (ASX:WOR) has been awarded a front-end engineering design (FEED) services and cost estimate contract for…