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SECOS Group (ASX:SES) on track for record quarter

Industrial
ASX:SES      MCAP $21.47M
12 November 2020 16:45 (AEST)

Source: SECOS

SECOS Group (SES) expects to table a material increase in sales and achieve a record quarter of sales in the December period.

The company is on track to invoice between $7.3 million to $7.8 million worth of deliveries in the current quarter, compared to $5.8 million in the previous quarter.

In spite of COVID-19 related shipment delays, sales volumes in the September quarter were considerably higher than the year before.

In fact, unaudited figures show it was the company’s most successful to date in terms of biopolymer sales, constituting 57.5 per cent of total sales.

“We remain on track to meet or exceed our internal sales targets and are actively expanding capacity to supply current sales commitments and to cater for additional growth opportunities that we see,” CEO Ian Stacey said.

Headquartered in Melbourne, SECOS has production facilities in China and Malaysia.

During the quarter, the group drew on funds from a recent $15 million capital raise to invest in augmenting production capacity for its council food and organic waste bags as well as dog waste bags.

SECOS will also increase resin making capacity in the first quarter of 2021 to keep pace with demand.

“I am glad to say we have an experienced operational team around the world who are working hard to meet the evolving needs of our customers. I thank them for their contributions to our results and for the support of the Board who are all working on delivering on our promise to grow at a pace which continues to exceed bioplastic industry averages,” the CEO concluded.

Shares are up 12.9 per cent at market close, trading for 17.5 cents.

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