Cereplast, Inc. (NASDAQ:CERP), a leading manufacturer of proprietary bio-based, compostable and sustainable plastics, announced financial results for its first quarter ended March 31, 2011.
“The first quarter 2011 results reflect the initial quarter of significant revenues for the company and demonstrate the momentum of our business as we continue to benefit from legislation banning the use of plastic bags and suggesting the use of bioplastic in the European Union and other emerging markets, as well as the higher cost of commodities,” said Frederic Scheer, Chairman and Chief Executive Officer of Cereplast. “This momentum sets the stage for strong future growth as illustrated by the increased customer activity in Europe and establishment of important distribution relationships that are expected to ramp in scope and size throughout the remainder of the year.”
Scheer continued, “To satisfy the expected growth in revenues, we announced plans for a strategically located plant in Italy solidifying our continued commitment to meet the increasing demand for bioplastic resin in Europe. This is one of several initiatives in place to support growth and improve gross margins.”
First Quarter 2011 and Recent Highlights
- Opened initial sales office in Europe with facility in Bönen, Germany, in January, to support the rapid expansion of its European operations.
- Signed distribution agreements during the first quarter solidifying the company’s presence in the growing European market.
- Entered into a distribution agreement with DMT Plasticolor, in March, to supply Cereplast bioplastic resins to the Croatian marketplace.
- Signed distribution agreements in January with BioWorks Pl, ColorTec S.r.l., and Euroink Romania, to supply bioplastic resin to the Southern Italian, Polish, Romanian, and Slovenian markets.
- Launched a new trademarked icon, in April, to help consumers identify products made from bioplastics. The new symbol is a result of Cereplast’s “Make Your Mark” competition which produced a new icon that will represent the next generation of plastics — bio-based, biodegradable, and compostable plastics that protect and preserve the environment. The new icon will be used in a similar fashion to the recycling symbol as it will be stamped on products and serve as an identifying mark of bioplastic material.
- Announced Italy-based bioplastic manufacturing plant, in May, to create efficiencies and enable continued expansion into European market. The plant is expected to have 100,000 tons of capacity and is to be financed by local Italian financial institutions.