- 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.