Up 330% in a year, Secos (ASX:SES) share price slides on results

The Secos (ASX:SES) share price has skyrocketed over the past year but is sliding today following release of the company’s half-year results.
The post Up 330% in a year, Secos (ASX:SES) share price slides on results appeared first on The Motley Fool Australia. –

asx share price flat represented by investor shrugging

Secos Group Ltd (ASX: SES) shares are sliding today after the company released its financial results for the half-year ending 31 December (H1 FY21). At the time of writing, the Secos share price has slumped 1.64% to 30 cents. But over the last year, Secos shares have rocketed by nearly 330%. 

Let’s take a look at how the sustainable packaging manufacturer has been performing.

What did Secos report?

The Secos share price is on the slide today despite the company reporting a half-year net profit after tax (NPAT) of $66,000. That compares to a net loss of $1.1 million in the first half of the 2020 financial year.

The company’s gross profit margin increased to 18.2%, up from 14.2% in the prior corresponding period.

Revenue increased 30.5% year on year, driven by a 129% increase in the company’s biopolymer sales. In H1 FY20, Secos’ bio-based sales represented 39% of total sales. In the half-year just reported, bio-based sales made up 73% of total sales.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at $576,000. Secos reported it had $14.3 million in cash with no debt as at 31 December.

The company now boasts global sales to 20 countries, which it says are “protected by strong patents, technical knowhow and distribution channels”.

During the half, Secos also completed the first phase of expansion in its China plant. The company noted strong growth in demand for its compostable bags in China, and the plant expansion is intended to open the door to an additional US$3 million in compostable bag sales annually.

Looking ahead, Secos stated, “The forward pipeline for the company is strong, with Secos seeing significant growth opportunities with major brands in various regions.” Secos added it “expects to further expand its retail branded MyEcoBag range via Woolworths and other retail chains”.

Secos share price snapshot

If you had bought Secos shares this time last year, you’d be sitting on a gain of 328%. By comparison, the All Ordinaries Index (ASX: XAO) is up 8% over the past 12 months.

Year to date, the Secos share price is up 42.86%.

Based on the current Secos share price, the company has a market capitalisation of around $163 million.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Up 330% in a year, Secos (ASX:SES) share price slides on results appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!