SEYMOUR, Ind., July 30, 2013 (GLOBE NEWSWIRE) -- Cereplast, Inc. (OTCQB:CERP) (the "Company"), a leading manufacturer of proprietary biobased, compostable and sustainable bioplastics, today is providing a shareholder update including an overview of the first half of 2013 and an outlook for the remainder of the year. The Company has made great strides over the past seven months and anticipates continued growth and success during the rest of 2013.
Compared to 2012, revenue for the first 6 months of 2013 experienced major growth, with the expected number to top approximately $1.7MM compared to about $0.2MM in 2012, reflecting a nearly 800% increase. This growth was fueled by the passing of Italian legislation that will require merchants to replace traditional single-use plastic bags with bioplastic and other alternatives. Severe sanctions will be imposed upon merchants that do not comply. Although this legislation is pending enforcement, management expects it to go into full effect in the fall of 2013. Upon enforcement, the Company believes that there will be a substantial increase in demand for its bioplastic resins. For the past 18 months, the Company has nurtured a group of over 70 Italian companies that have completed multiple successful tests with various grades of Cereplast Compostables® blown film resins. The Company estimates that the potential addressable market for their blown film resins in Italy is approximately $50 million per year. The Company has ample production capacity to serve such a demand.
Cereplast's office in Hyderabad, India has been actively educating local converters and introducing Cereplast resins. The demand is starting to accumulate, and several agreements are currently underway. India is one of the largest consumers of plastic polymers in the world, and the potential volume for bioplastic sales in the country is quite significant as they adopt bioplastic alternatives to conventional plastics, India is also very sensitive to the environment and has experienced firsthand the calamities created by excess industrialization and carbon dioxide emissions.
In the United States, the Company is working on over ten new projects both for Cereplast Compostables® resins and Cereplast Sustainables® resins. The steady increase in oil pricing is fueling a renewed interest in Cereplast resins and with two new business development managers dedicated to the domestic market, Management is confident to see measurable results before the end of Q3.
The Cereplast Research and Development department commercialized two new resins including Biopropylene A150D, an injection molding grade manufactured with 51% post-industrial algae biomass, and Compostable 2020D, an extrusion blow molding resin. Two new patents were granted and applications have been filed to protect the Company's new innovation in nano materials and algae biobased resins. The Company also incorporated a new, wholly owned subsidiary Algaeplast vehicle to develop algae-related research.
On the corporate side, the Company adopted an aggressive approach and filed legal actions against certain clients for their 2011 unpaid purchases. The Company was already successful in recouping valuable inventory in Italy as a settlement for outstanding receivables and is optimistic about the overall outcome of these pending actions.
"We are optimistic for the remainder of the year," said Mr. Frederic Scheer, Cereplast's Chairman and Chief Executive Officer. "Growth is expected to continue and increase and we believe that our growth projections will contribute to a stronger share price. The fundamentals of the company are excellent and our Management team is working to exceed our shareholders' revenue expectations."
About Cereplast, Inc.
Cereplast, Inc. (OTCQB:CERP) designs and manufactures proprietary biobased, sustainable bioplastics which are used as substitutes for traditional plastics in all major converting processes - such as injection molding, thermoforming, blow molding and extrusions - at a pricing structure that is competitive with traditional plastics. On the cutting-edge of biobased plastic material development, Cereplast now offers resins to meet a variety of customer demands. Cereplast Compostables® resins are ideally suited for single-use applications where high biobased content and compostability are advantageous, especially in the food service industry. Cereplast Sustainables® resins combine high biobased content with the durability and endurance of traditional plastic, making them ideal for applications in industries such as automotive, consumer electronics and packaging. Learn more at www.cereplast.com. You may also visit the Cereplast social networking pages at Facebook.com/Cereplast, Twitter.com/Cereplast and Youtube.com/Cereplastinc.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.