How Is MyEco Group Driving 82% Growth in Branded Sales Amid Restructuring?

Strategic Growth and Operational Overhaul

MyEco Group (ASX, MCO) has delivered a solid FY25 performance with total sales rising 9% to $15.7 million, propelled by an impressive 82% increase in sales of its flagship MyEco branded products. This growth underscores the company’s refined strategy to focus on its own branded sustainable packaging solutions, leveraging biopolymer innovation to drive long-term value.

Central to MyEco’s approach has been an operational restructure aimed at streamlining production and distribution. The company has rationalized manufacturing assets, relocated pilot production equipment to China, and forged partnerships with high-end converters in Southeast Asia. These moves are designed to reduce costs, enhance supply chain flexibility, and scale production without heavy capital expenditure.

Market Leadership and International Expansion

MyEco’s products maintain strong market leadership in Australia, holding the number one position in compostable bin liners and kitchen caddy bags across major retailers Woolworths and Coles. The brand’s footprint now extends to over 2,400 Australian stores and has expanded internationally, with notable sales growth in the USA (up 258%) and new supply agreements in the UK, including a significant contract with Home Bargains.

While council and waste management sales dipped slightly by 2%, this was largely due to timing shifts in customer orders. The company services 59 councils across Australia and anticipates growth driven by expanding Food Organics and Garden Organics (FOGO) programs, particularly in New South Wales where new regulations will mandate food organics separation from mid-2026.

Financial Performance and Cost Management

Gross profit rose 22% with a 273 basis point improvement in gross margin, reflecting better sales mix and volume. However, resin sales fell 37% as MyEco prioritized internal use of resin capacity to support its branded products amid volatile resin markets. Marketing and distribution expenses increased by 24%, reflecting investments in branding and R&D collaborations with the Solving Plastic Waste Cooperative Research Centre and Australian universities.

The operational restructure is expected to yield approximately $2.5 million in fixed cost savings in FY26, primarily through reduced manufacturing overheads and lower rent-related expenses. MyEco targets EBITDA breakeven at around $25 million in sales, signaling a clear pathway to profitability as the business scales.

Regulatory Challenges and Innovation Pipeline

MyEco continues to advocate against a proposed ban on certified compostable caddy bin liners in Victoria, warning that such a move could undermine circular economy goals and increase landfill waste. The company remains engaged with government stakeholders to seek policy alignment with other Australian states that support compostable solutions.

On the innovation front, MyEco’s product development pipeline includes new compostable films, landscape netting, and reusable shopping bags, supported by certifications and ongoing research partnerships. This commitment to innovation underpins the company’s growth ambitions and ability to meet evolving regulatory and customer demands.