MyEco Group has reported a record quarter for its MyEcoBag® products, driven by strong Australian retail growth and poised to benefit from upcoming NSW organic waste regulations.
- Record quarterly MyEcoBag® sales of $1.7 million, up 68% QoQ
- Total Q2 FY26 sales reached $4.0 million, up 7.4% QoQ
- Strong growth in Australian retail and council waste channels
- Operational restructure reduces costs and boosts production flexibility
- Anticipated market expansion from NSW Government organic waste mandate
Record Sales Momentum
MyEco Group Ltd (ASX – MCO) has delivered an impressive sales update for the December 2025 quarter, with its flagship MyEcoBag® products achieving an all-time quarterly sales record of $1.7 million. This represents a striking 68% increase quarter-on-quarter and a 4% rise compared to the same period last year. Total sales for the quarter reached $4.0 million, up 7.4% from the previous quarter, underscoring the company’s growing footprint in sustainable packaging.
The standout performance was driven primarily by the Australian market, where MyEcoBag® sales surged 50.2% quarter-on-quarter and 24.5% year-on-year. MyEco Group continues to hold category leadership in major supermarket chains Coles and Woolworths, with a commanding market share of 39% and 63% respectively across thousands of stores nationwide.
Growth Across Channels and Regions
Beyond retail, the council and waste channel also showed promising growth, with first-half sales up 20.5% year-on-year, largely driven by successful Food Organics Garden Organics (FOGO) rollouts such as the Ballarat Council program. Although Q2 sales in this channel dipped due to timing differences in deliveries, the outlook remains positive, especially with the NSW Government’s upcoming mandate requiring supermarkets, institutions, and hospitality businesses to separate organic waste starting July 2026.
Internationally, MyEco Group is navigating challenges posed by recent U.S. tariff policy changes, which have impacted white label and U.S. sales. However, the company recorded a 424.5% quarter-on-quarter recovery in U.S. sales during Q2 FY26, albeit still down 46.3% year-on-year. Efforts to diversify include expanding into “big box” retailers in Mexico and Canada and initial orders from a UK retailer, Home Bargains, which could bolster white label sales in the second half of FY26.
Operational Efficiency and Future Prospects
MyEco Group’s recent operational restructure has materially reduced costs and enhanced production flexibility by leveraging external manufacturing partners. This strategic move positions the company to scale efficiently while managing capital expenditure. The company is also advancing the development of more advanced compostable resins in collaboration with research institutions, aiming to broaden product applications and sustainability credentials.
Looking ahead, MyEco Group plans to expand its MyEco® branded product range within Australian retail and capitalize on the NSW organic waste separation mandate, which opens a significant market opportunity for compostable bags. The company’s confidence is underpinned by its category leadership, growing distribution networks, and a clear pathway toward positive earnings before interest, tax, depreciation, and amortisation (EBITDA).
Bottom Line?
With record sales and regulatory tailwinds, MyEco Group is well-positioned to accelerate growth and improve profitability in FY26.
Questions in the middle?
- How will the NSW organic waste mandate impact MyEco Group’s sales trajectory beyond FY26?
- Can MyEco Group mitigate ongoing tariff-related uncertainties in the U.S. market effectively?
- What new product innovations or partnerships might drive further market share gains?