Secos Group (ASX: SES) shares are up 34% on trading on the 27 January 2021 after release of the groups quarterly results for the December 2020 period.
SECOS Group Limited is a leading developer and manufacturer of sustainable packaging materials. The company supplies its proprietary biodegradable and compostable resins, packaging products and high-quality cast films to a blue-chip global customer base. SECOS Group is integrated from resin production, into film (cast and blown) production and can develop bespoke compostable solutions for a range of applications. The compan holds a strong patent portfolio and the global trend toward sustainable packaging is fueling the Company’s growth.
December 2020 quarter sales were up 50.1% compared to December 2019 quarter to AUD $7.9 million and up 34.2% on the September 2020 quarter.
The company was particularly pleased with sales of biopolymer which were up 71% compared to the September quarter.
Sales of compostable film for hygiene and medical applications look to be a strong sales driver in subsequent periods with an increase of 80% from September quarter.
The global push for banning single use plastics is generating significant tailwinds for Secos. The company's strategic distribution partner in Mexico, ISOI Mexico, commenced with commercial ordres of over AUD $1.5 million for the company's Cardia products.
Major tailwinds for the company will be European countries such as Germany banning sale of single-use plastic straws, cutlery and food containers from July 2021.
The Cardia range includes
Cardia Compostable - a range of biodegradable resins that meets intenational standards of compostability.
Cardia Biohybrid - produced using sustainable resins combining renewable thermoplastics with polyloefin materials to reduce customers dependence on finite oil resources and reduce carbon footprint.
Cardia bioproducts - Secos offers customers a complete design, development and delivery service for finished film and bag goods.
The December quarter 2020 results release can be downloaded below
An October research paper can be downloaded here
A video interview wth the Chairman discussing bioplastics market can be viewed below