The Secos Group Ltd (ASX: SES) share price is rocketing today, up more than 18% in afternoon trade.
We look at the latest business update from the ASX listed sustainable packaging manufacturer.
What update did Secos provide?
The Secos share price is soaring after the company reported a huge lift in Woolworths Group Ltd (ASX: WOW) stores offering Secos' certified compostable bin liners.
In July 2020, Woolworths initially rolled out Secos MyEcoBag brands to 88 Eco Stores. According to the release, the rollout performed beyond expectation. Secos has now been awarded 115 more stores within the Woolworths retail network, bringing the total to 203 stores.
Commenting on the expanded offering by Woolworths, Secos CEO Ian Stacey said:
This expansion, along with growth being experienced across various customer groups, is expected to continue strong revenue growth for Secos into FY2022 and beyond.
Secos is pleased to broaden the store number with Woolworths and is pleased to see the hard work in launching new brands with Woolworths is yielding positive results. Secos also will see its products move to a more prominent position with the Woolworths store shelf plan.
The company said that volumes remain dependent on in-store sales growth. It added that the demand for compostable bags via retail chains is "significant", and it expects demand to grow as consumer increasingly embrace sustainable practices.
The Secos share price is also getting a lift from the company's forecast of additional growth opportunities for its products in grocery and convenience stores in Australia, Latin America and the United States. It added that many Australian Councils are in the process of issuing compostable bin liners to households.
Secos share price snapshot
No doubt about it, Secos shareholders will have little to complain about over the past 12 months. With today's gains factored in, shares are up 342% since this time last year. By comparison, the All Ordinaries Index (ASX: XAO) has gained 31% over that same time.
Year-to-date the Secos share price has continued to outperform, up 26% so far in 2021.
