How Is MyEco Group Driving 81.8% Growth in MyEco® Sales Amid Market Challenges?

Strong Growth in Sustainable Packaging Sales

MyEco Group Ltd (ASX – MCO), a developer and manufacturer of sustainable packaging solutions, has reported a solid 8.6% increase in total sales of sustainable products for the fiscal year 2025, reaching $15.7 million. This growth was largely propelled by the company’s flagship MyEco® brand, which saw global sales jump 81.8% to $5.3 million. The brand maintains a dominant position in major Australian retailers Coles and Woolworths, with market shares of 39% and 59% respectively, and has expanded its footprint into the US and UK markets.

In Australia, MyEco® sales grew 64.2%, while US sales soared 257.5%, although recent US government tariff policy changes have introduced some uncertainty in trading conditions. The company also reported a 15% increase in white label and other sales, primarily due to a new UK retail customer, Home Bargains, which contributed $0.5 million in initial orders for compostable pet waste bags.

Strategic Production Focus and Margin Improvement

MyEco Group strategically prioritized production capacity for its own MyEco® products amid volatile resin market conditions, which led to softer resin sales declining 36.9% year-on-year. Despite this, the company improved its gross margin to 24.2%, up from 21.5% in FY24, reflecting better product mix and operational efficiencies.

The company’s resin and film segments remain areas of active development, with ongoing collaboration with the Solving Plastic Waste Cooperative Research Centre and Australian universities to innovate biopolymer technology and expand applications for compostable packaging.

Operational Restructure and Financial Position

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 aims to enhance margins and establish a clear pathway to profitability, aligning with the company’s medium-term goal of delivering positive EBITDA.

At the end of June 2025, the company held a cash balance of $3.6 million, with no bank debt and an unused $1 million secured financing facility. Net operating cash flows were slightly negative at $0.2 million in Q4 FY25, reflecting a mix of customer payments and production adjustments ahead of the restructure.

Regulatory Engagement and Market Outlook

MyEco Group continues to engage proactively with government bodies, particularly in Victoria, to advocate for certified compostable products amid proposed regulatory changes. The company is addressing misinformation about compostable plastics and pushing for policy outcomes consistent with other Australian jurisdictions that support sustainable packaging solutions.

Looking ahead, council and waste management sales are expected to grow, supported by the rollout of Food Organics Garden Organics (FOGO) programs and government mandates, such as New South Wales’ requirement for universal household FOGO services by 2030 and food organics separation by businesses from mid-2026.

Leadership Continuity

In leadership news, CEO Richard Tegoni has agreed to extend his term for up to another year while the company conducts a broad search for his successor. Mr. Tegoni will remain on the board to ensure a smooth transition, underscoring the company’s commitment to stable governance during this pivotal growth phase.