The Board of SECOS Group provided the market with an update on progress of its MyEcoBag® commercialisation activities. MyEcoTM success within Woolworths stores, together with the expansion into other distributors and retail chains supports the Board's strategic investment decision to expand in the retail market and the extra investment incurred in FY22. These investments are expected to achieve positive returns in the coming year.

The availability of SECOS' compostable bags via Woolworths stores will give more households participating in approved council food organic waste programs the option to dispose of the bags and food waste in their green waste bin. The use of SECOS' compostable bags offers households a clean and convenient way to assist with the separation of their food waste which is critical to ensure food does not end up in landfill. The success of MyEcoTM branded products is becoming a material subcategory within the Company's total bioplastic bag sales.

The expansion into 970 Woolworths stores has validated the Board's decision to invest extra funds into developing a global retail brand during a period when the Company was experiencing a range of global challenges (Covid-19 related rising freight and input costs, shipping delays, Covid lockdowns in some ports and severe floods experienced at one of the Company's manufacturing hubs). SECOS will continue to execute its growth strategy and expects returns to flow through to the bottom line as trading conditions normalize. The Company will also benefit from improving economies of scale through increased utilisation of the Company's new Malaysian plant which was launched in January this year.

SECOS continues to develop further opportunities for growth in new markets for its branded MyEcoBag® and MyEcoPet® line of products and is working to garner market share in grocery and convenience stores in Australia, the USA, Latin America and elsewhere.