Myeco Group Ltd · ASX:MCO
Myeco — FY2024 Earnings Presentation
25 slides from Myeco's earnings presentation, Aug 22, 2024
Slide 1: FY24 Full Year Results Presentation
FY24 FULL YEAR RESULTS PRESENTATION AUGUST 2024 ASX: SES CHANGING THE WORLD OF PACKAGING SECOS GROUP LIMITED (ASX: SES) 1 FY24 FULL YEAR RESULTS PRESENTATION
Slide 2: Agenda
AGENDA • FY24 Highlights & Operational Update • FY24 Financial Results • Strategy & Outlook SECOS GROUP LIMITED (ASX: SES) 2 FY24 FULL YEAR RESULTS PRESENTATION
Slide 3: FY24 Highlights & Operational Update
FY24 HIGHLIGHTS & OPERATIONAL UPDATE SECOS GROUP LIMITED (ASX: SES) 3 FY24 FULL YEAR RESULTS PRESENTATION
Slide 4: Strong Growth in H2 vs H1 FY24
STRONG GROWTH IN H2 VS H1 FY24 Strong H2 FY24 sales growth (33.3% vs H1 FY24): MyEco® branded product sales $1.7m in H2 FY24, up 39.7% on H1 FY24 driven by: • Increase in retail sales via Woolworths, Coles and Independent stores throughout Australia • Launch and ramp up of online sales in US major r
Slide 5: SECOS is a True Environmental Company
SECOS IS A TRUE ENVIRONMENTAL COMPANY SECOS is now exclusively a sustainable products and solutions business • SECOS a market leader in Australia in Retail with MyEco® products now distributed to over 2,400 Australian stores (in the compostable bin liner and kitchen caddy bags category) • Exited con
Slide 6: Established Global Manufacturing and Distribution
ESTABLISHED GLOBAL MANUFACTURING AND DISTRIBUTION • Resin manufacturing plants in Malaysia and China with global access to world markets • Bag manufacturing production in Malaysia and China with global access to world markets • Convertor partnerships to grow sales of resin without further significan
Slide 7: SECOS Has Capability to Expand Globally
SECOS HAS CAPABILITY TO EXPAND GLOBALLY SECOS has established a significant global sales and distribution footprint and supplies over 25 countries globally via the following: • SM Resinas, a major distributor of resins in Latin America • ISOI, an exclusive sales agent in LATAM for resin • Jewett Cam
Slide 8: SECOS Research & Development (R&D) Capabilities
SECOS RESEARCH & DEVELOPMENT (R&D) CAPABILITIES New matched R&D funding of $140.6 million from the Australian Federal Government for a new Cooperative Research Centre (“CRC”) program aimed at solving the plastic waste problem The Solving Plastic Waste CRC is to commence in Q1 FY25 with SECOS’s share
Slide 9: Update on Draft Victorian Household Waste & Recycling Standard 2024
UPDATE ON DRAFT VICTORIAN HOUSEHOLD WASTE & RECYCLING STANDARD 2024 In June 2024, Recycling Victoria released a draft Household and Recycling Service Standard which proposed banning certified compostable caddy bin liners in Victoria’s new four-stream household waste and recycling system. This would
Slide 10: Update on Draft Victorian Household Waste & Recycling Standard 2024 (Continued)
UPDATE ON DRAFT VICTORIAN HOUSEHOLD WASTE & RECYCLING STANDARD 2024 (CONTINUED) In tandem with government lobbying efforts, SECOS undertook a marketing BIOPLASTICS MEANS NO CHEMICAL CONTAMINATION campaign to mobilise public support against the proposal and to sign a petition at myecobag.com.au/stop-
Slide 11: FY24 Sales by Product Segment
FY24 SALES BY PRODUCT SEGMENT • MyEco® branded products (Australia) sales up 28.3% on PCP and continues to be the category leader in compostable bin liner and kitchen caddy sales in both Coles and Woolworths • MyEcoWorld® branded products (USA and Canada) sales to JCC, which are in the ramp-up stage
Slide 12: FY24 Sales by Product Segment: MyEco Branded
FY24 SALES BY PRODUCT SEGMENT COMPOSTABLE BAGS- MYECO BRANDED • FY24 MyEco® Branded global sales grew by $1,800,000 33.0% on PCP $1,600,000 • MyEco® Branded products sold in over 2,400 $1,400,000 Australian stores comprising 970 Woolworths $1,200,000 stores, 850 Coles Stores and in independent store
Slide 13: FY24 Sales by Product Segment (Continued): Council & Waste
FY24 SALES BY PRODUCT SEGMENT (CONTINUED) COMPOSTABLE BAGS- COUNCIL & WASTE $3,500,000 • FY24 sales increased by 17.5% on PCP $3,000,000 • Increased supply to 52 councils in FY24 (FY23: 34 councils) $2,500,000 • FOGO rollout programs expected to $2,000,000 continue as more local governments $1,500,0
Slide 14: FY24 Sales by Product Segment (Continued): Compostable Resin
FY24 SALES BY PRODUCT SEGMENT (CONTINUED) COMPOSTABLE RESIN SALES $3,000,000 • Decline in resin sales is stabilising and $2,500,000 was up 13.5% in Q4 FY24 vs Q3 FY24, although there is residual impact of $2,000,000 difficult global market conditions and excess inventory of compostable resin $1,500,
Slide 15: FY24 Financial Results
FY24 FINANCIAL RESULTS SECOS GROUP LIMITED (ASX: SES) 15 FY24 FULL YEAR RESULTS PRESENTATION
Slide 16: Profit and Loss (Continued Operations)
FY24 PROFIT AND LOSS (CONTINUED OPERATIONS) $’000 FY24 FY23 Var (%) • FY24 Group sales down by 8.1% impacted by: Sales 14,449 15,717 (8.1%) ̶ Resin sales, down 22.6% on PCP, due to difficult global Gross Profit 3,112 2,591 20.1% market conditions and logistic/pandemic factors that led to excess resi
Slide 17: Gross Margin Recovery
FY24 GROSS MARGIN RECOVERY (CONTINUED OPERATIONS) GROSS MARGIN % 22.3% 20.5% 18.8% 14.1% H1 FY23 H2 FY23 H1 FY24 H2 FY24 Gross margin improvement driven by freight rates and material costs returning to pre-pandemic levels SECOS GROUP LIMITED (ASX: SES) 17 FY24 FULL YEAR RESULTS PRESENTATION
Slide 18: Loss Before Tax Movement
LOSS BEFORE TAX MOVEMENT (CONTINUED OPERATIONS) (1 ) (2 ) ( ) ( ) 2 $'000 521 ( 5) (5 ) (2 1) ( ) (5 ) (5 2) ( ) ( ) ( ) ( 5 ) ( ) ( ) Gross Pro t Reduced e pected credit loss Other mpairment of intangibles stoc obsolesence FY2 nvestment in People ERP mplementa on Costs Deprecia on FY2 mor sa on SEC
Slide 19: Balance Sheet June 2024
BALANCE SHEET 30 JUNE 2024 Jun $’000 Jun 2024 Var % ● Cash balance at 30 June 2024 was $6.1m with no debt 2023 ● Current ratio of 3.8x compared to 4.6x in June 2023 Cash at Bank 6,108 8,424 (27.5%) ● Trade and other receivables decreased by $0.8m mainly Trade and Other Receivables 3,246 4,033 (19.5%
Slide 20: Cash Flow
CASH FLOW (CONTINUED & DISCONTINUED OPERATIONS) $’000 FY24 FY23 Opening Cash 8,424 4,122 Cash Flows from Operating Activities (1,287) 2,018 Cash Flows from Investing Activities (302) (639) Cash Flows from Financing Activities (719) 2,938 Net Cash Movement (2,308) 4,317 Foreign Exchange (8) (15) Clos
Slide 21: Strategy & Outlook
STRATEGY & OUTLOOK SECOS GROUP LIMITED (ASX: SES) 21 FY24 FULL YEAR RESULTS PRESENTATION
Slide 22: Strategic Direction
STRATEGIC DIRECTION A TRUE SUSTAINABLE PRODUCTS COMPANY, STRIVING TO BECOME A LEADER IN SUSTAINABLE SOLUTIONS ● SECOS is a proactive leader in the evolving regulatory and market landscape in Australia ● Entering new markets to build global market share with our leading Australian MyEco® brand, with
Slide 23: Outlook
OUTLOOK SALES OUTLOOK IS STRENGTHENING ● Ongoing growth in major retailers and independent distributors of the global MyEco® branded products which are currently sold in over 2,400 stores in Australia and growing in the USA ● Continued growth in Council and waste business underpinned by new councils
Slide 24: Forward-Looking Statements Disclaimer
FORWARD-LOOKING STATEMENTS DISCLAIMER This presentation contains “forward-looking statements.” Such forward-looking statements may include, without limitation: • estimates of future earnings; • estimates of future production and sales; • estimates of future cash costs; • estimates of future cash flo
Slide 25: SECOS GROUP LIMITED (ASX: SES) FY24 FULL YEAR RESULTS PRESENTATION
SECOS GROUP LIMITED (ASX: SES) 25 FY24 FULL YEAR RESULTS PRESENTATION