Bioplastics developer Secos has seen its share price continue its recent rise after the release of its FY21 earnings, with the company reporting year-on-year sales growth of 43 per cent, with revenue for 2021 up to $30 million from $21 million last year.
The financial performance improvements for FY21 reveal a strong scorecard, with highlights including a 318 per cent rise in net profits after tax, taking it back into the black at $2.6 million, versus a $1.1 million loss in FY20.
Margins improved to 19 per cent; and the ongoing strength of the company’s balance sheet was shown, with total assets growing by 114 per cent to $33.7 million, and Secos ending the period with $11.3 million cash and no debt.
“The company’s excellent results were achieved despite very difficult global trading conditions hampered by Covid restrictions, and the impact the virus had on the world economies generally,” commented Richard Tegoni, chairman of Secos.
“During the year, Secos experienced significant worldwide shipping challenges. However, Secos staff managed its supply chain well, and maintained strong customer service levels to deliver on its growth targets.”
Secos says it enjoys advanced technological capabilities in the compostable and bioplastics industry, and has established significant manufacturing assets, with three plants in Malaysia and one in China.
It has long standing relationships and sales offices across Asia and the Americas, and has what is describes as high achieving distribution network partners in Mexico and throughout Europe.
The company also recently invested in a global research and development centre in Australia, which will focus on new product developments aimed at achieving the environmental, economic and health benefits as replacement technologies for toxic, petrochemical-based traditional plastics.
“Secos has delivered vastly improved results in 2021 and has established itself as one of the key global participants in the bioplastics and environmental packaging space,” commented Tegoni.
“Secos is now moving to a growth phase and will focus on sales growth in bio-resins, biofilms, bio-bags and will make further investment in the MyEco (its home compostable resins) branded product range.
“We believe the company is now well positioned for further growth and to take advantage of the shift to bioplastics, with the year ahead expected to be very positive.”