SES has unveiled its Q1 FY25 results and is planning a rebrand. Pic: Getty Images
SECOS unveils Q1 FY25 results, plans rebrand to MyEco Group
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- SECOS Group said total sales of sustainable products were $3.7m in Q1 FY25, up 17.2% on pcp
- A 12-litre compostable MyEcoBag® was launched in 970 Woolworths stores and compostable carry bags in 80 Ritchies stores during Q1
- SECOS plans a name change to MyEco Group, which it believes is better aligned with global branding
Special Report: Developer and manufacturer of sustainable packaging and materials SECOS Group Ltd (ASX:SES) has released its Q1 FY25 results as it prepares to change its name to MyEco Group Ltd, which it believes is better aligned with its global branding.
Total sales of sustainable products were $3.7m in Q1 FY25, up 17.2% on pcp, but down 7.4% QoQ, which SECOS said was primarily due to reduced council and waste management sales – these are highly seasonal and lower in the first half of each financial year.
Key highlights of Q1 FY25 include:
- Record quarter for MyEco branded global sales, which increased 62.8% on pcp to $900k and were up 20% QoQ
- Council and waste management sales were $800k in Q1, up 2.6% on pcp but down 37.7% QoQ, due to the seasonality of council sales
- Sustainable Film sales were $200k in Q1 FY25, up 77.8% on pcp and up 7.9% QoQ.
- Launch of a new compostable 12 litre MyEcoBag in 970 Woolworths stores and compostable carry-bags in 80 Ritchies stores
Launch in Woolworths and Ritchies stores
SECOS said the launch of reusable compostable checkout bags in Woolworths stores and carry bags in Ritchies stores opens a new market for the company.
It said replacing paper and plastic retail checkout bags with compostable alternatives presented a $2.2bn market opportunity in Australia.
During Q1 FY25 growth initiatives also continued in the US and Canada, with SECOS distributor Jewett Cameron Company (JCC) onboarding KeHe and UNFI (United Natural Foods Inc.), two of North America’s largest wholesale distributors, to supply MyEcoWorld® sustainable bags.
SECOS said MyEco® sustainable products were a key pillar of the company’s growth strategy.
The company expects strong sales growth in FY25, driven by the organic growth of existing products, including sales to new customers.
Growth in demand from councils
SECOS said the recent successful tender in Victoria for Ballarat Council, servicing 51,000 residential households, demonstrated demand for the company’s products and was projected to add $900k in revenue in Q4 FY25.
The sales cycle for Council Food Organics and Garden Organics (FOGO) rollout programs is highly seasonal, with a preference for months transitioning from summer to autumn.
Sales in the second half of the financial year are typically stronger, noted the company, and it expects this to hold true for FY25.
Sustainable resin sales up
Compostable resin sales increased 13.8% QoQ in Q1 FY25 and were up 0.7% on pcp.
Latin American resin sales remain steady, with an increased proportion of sales to domestic customers in Mexico due to growth in that area.
SECOS said it continued to develop new resin grades aimed at meeting global sustainability needs and addressing increasing competition from suppliers of lower-cost/lower-quality resins.
The company said this included the development of resins specifically designed for food packaging and magazine wrapping, as well as a lower-cost resin to tackle the latter.
Strong growth potential for sustainable film
SECOS said compostable and sustainable film sales, which represent a relatively small component of the company’s business, were up 77.8% on pcp to $200k for Q1 FY25 with potential for strong growth in the medium term.
The company is developing high-speed compostable wrapping film products, targeting the growing, high-volume sustainable pallet and magazine wrap markets.
The products are currently being trialled with several prospective customers.
SECOS is also developing a distribution channel to support the sale of its compostable and sustainable film products in major geographical markets.
Change of name
Shareholder approval is being sought at the SECOS AGM on November 14 with the company aiming to change its name to MyEco Group Ltd.
The company believes the new name will better align with its current activities and global branding.
The change would not affect the legal status of the company or any of its assets or liabilities.
This article was developed in collaboration with SECOS Group, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
