- Improved result expected for Half Year
- New City Council business awarded
- Changes in environmental awareness and renewables legislation continue to drive sales and increased customer engagement
Sustainable and eco-friendly bioplastics developer SECOS Group Limited (ASX: SES, “SECOS” or “the Company”) is pleased to provide trading update.
Based on unaudited accounts and subject to completion of December closing, SECOS expects the Company’s half year net loss to reduce significantly by over 50% compared with prior corresponding period.
Key Achievements in first six months include:
- Successful launch of two new resin grades and six new film grades including stiffer biopolymers and home compostable resins to expand the biopolymer product range and meet growing market demand.
Ian Stacey, SECOS CEO said, “It is pleasing to see the benefits of the Business Transformation Program flowing through to the bottom line. We are now seeing more and more city councils going FOGO (Food Organics – Garden Organics programs) with new business coming our way as we provide the compostable bag solution required by these councils”.
“Our investment in R&D and operational efficiency has also resulted in improved productivity and better asset utilization rates” Mr. Stacey said.
- Several bioplastic resin qualification trials are progressing and are expected to lead to further orders as plastic converters move to switch production to bioplastics to supply customer demands. Some of these trials, if successful will include applications for major international brands;
- SECOS is in discussion with a number of Australian brands who are signatories to the Australian Packaging Covenant (APCO) and National Packaging Targets. These targets require companies to change any single use plastic packaging to either 100% reusable, recyclable or compostable packaging by 2025.
- The development of a new compostable cast film application is progressing well and will expand opportunities into the hygiene market such as diapers, pads and medical film and flow wrap applications;
- Continued investment in R&D to develop new resin and film grades aimed at catering for emerging market demands for bioplastic applications; and
- Investment in Courier bag production assets underway with trials for compostable courier bags progressing to final stage development.
Richard Tegoni, SECOS Chairman said, “The overwhelming media coverage on the failure of recycling and the impact of plastics on the environment has led to a significant market shift to find alternative environmentally friendly packaging technologies. This has resulted in an unprecedented level of enquires from customers seeking renewable packaging solutions such as bioplastics.”