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- Bioplastics developer SECOS Group (SES) is one step closer to turning a profit after significantly reducing its loss margins over FY20
- In a market update previewing some unaudited results, the company said it expects its net loss for the financial year to shrink by 71.5 per cent to $1.2 million — a far cry from 2019’s $4.1 million loss
- SECOS’ earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the full year is expected to be a net loss below $100,000 after the company went EBITDA-positive in FY20’s second half
- This financial improvement was driven by the strong demand for the company’s biodegradable products, increased plant utilisation and manufacturing efficiencies
- The company will publish its full FY20 results on August 27
- On the market this morning, SECOS is up 6.90 per cent and is trading for 15.5 cents per share
Bioplastics developer SECOS Group (SES) is one step closer to turning a profit after significantly reducing its loss margins over FY20.
In a market update previewing some unaudited results, the company said it expects its net loss for the financial year to shrink by 71.5 per cent to $1.2 million — a far cry from 2019’s $4.1 million loss.
SECOS’ earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the full year is expected to be a net loss below $100,000 after the company went EBITDA-positive in FY20’s second half.
The company says this financial improvement was driven by the strong demand for its biodegradable products, increased plant utilisation, lower interest costs and operation and manufacturing efficiencies.
Following this, SECOS is expecting strong profit growth in the 2021 financial year. The company has signed significant new biopolymer contacts, increased biopolymer pipeline and improved efficiencies.
The company will publish its full FY20 results on August 27.
Earlier this week, SECOS signed a significant supply agreement with JC USA. Under this contract, the company will supply its pet waste bags, which are made from biopolymer resins.
On the market this morning, SECOS is up 6.90 per cent and is trading for 15.5 cents per share at 10:47 am AEST.
