How Is MyEco Group Driving 81.8% Growth in Global Sustainable Products?

Strong Sales Growth in Sustainable Packaging

MyEco Group Ltd (ASX – MCO), a key player in sustainable packaging and materials, has reported a solid 8.6% increase in total sales for FY25, reaching $15.7 million. This growth was largely driven by the company’s flagship MyEco® product range, which saw an impressive 81.8% jump in sales to $5.3 million. The company continues to dominate the compostable bin liners and kitchen caddies category in major Australian retailers Coles and Woolworths, while also expanding its footprint in the US market.

In the fourth quarter alone, MyEco® global sales rose 56.4% year-on-year, buoyed by strong retail performance in Australia and the launch of compostable carry-bags in Ritchies stores. However, US sales showed some softness, impacted by recent changes in government tariff policies that have introduced uncertainty into international trading conditions.

Expanding Market Reach and Product Lines

Beyond its core branded products, MyEco Group’s white label and other sales increased 15% in FY25, thanks in part to a new supply agreement with UK retailer Home Bargains. This partnership contributed $0.5 million in first-order sales of compostable pet waste bags in Q4, signaling the company’s growing international presence.

Meanwhile, sales to Australian councils and waste management programs remained steady, with a slight 2.1% decline attributed to timing shifts in contract recognition. The company has expanded its council supply network from 52 to 59 councils, driven by the rollout of Food Organics Garden Organics (FOGO) programs. These initiatives, supported by government mandates such as New South Wales’ requirement for universal household FOGO services by 2030, are expected to underpin future growth in this segment.

Strategic Production Focus Amid Market Volatility

MyEco Group’s resin sales fell 36.9% to $2.3 million as the company strategically prioritized resin capacity for its own MyEco® branded products, which are experiencing record demand. This decision also reflects the volatile conditions in the resin market. Film sales, a smaller segment of the business, declined modestly by 7.6%, though the company is actively developing new distribution channels for its compostable film products, including newspaper and pallet wrapping applications.

To improve operational efficiency and margins, MyEco Group is in the final stages of an operational restructure expected to deliver approximately $2.5 million in fixed cost savings in FY26. This initiative aligns with the company’s medium-term goal of achieving positive EBITDA and establishing a clear path to profitability.

Looking Ahead

While the company remains focused on its strong domestic market, accounting for about 90% of FY25 sales, it is carefully monitoring the impact of US tariff policy changes on its international sales strategy. Growth prospects remain promising, supported by ongoing innovation in biopolymer technology, expanding council contracts, and new retail partnerships. MyEco Group’s ability to navigate supply chain uncertainties and capitalize on sustainability trends will be critical as it seeks to build on its momentum in FY26 and beyond.