MyEco Group Ltd has reported record quarterly sales of its MyEcoBag® products, alongside improved gross margins and a significant reduction in operating cash outflows following a strategic operational restructure.
- Record $1.7m quarterly sales of MyEcoBag® products in Q2 FY26, up 68% QoQ
- Total Q2 FY26 sales reached $4.0m, with 7.4% growth quarter on quarter
- Gross margin improved to 24.7% in H1 FY26 from 23.0% in prior year
- Normalised EBITDA loss narrowed to -$1.0m to -$1.1m in H1 FY26 from -$1.9m
- Cash balance of $2.6m with no bank debt and an unused $1.0m financing facility
Record Sales Momentum in Sustainable Packaging
MyEco Group Ltd (ASX – MCO), a developer and manufacturer of sustainable packaging solutions, has delivered a standout performance in the December 2025 quarter. The company achieved an all-time record quarterly sales figure of $1.7 million for its flagship MyEcoBag® products, marking a 68% increase quarter on quarter and a 4% rise compared to the prior corresponding period. This surge was largely driven by strong demand in Australia, which remains the company’s largest market.
Total sales for the quarter reached $4.0 million, up 7.4% from the previous quarter, although slightly down 1.0% year-on-year due to timing differences in deliveries to council customers. Despite these timing effects, the company’s underlying sales growth trajectory remains positive, supported by expanding retail and council channels.
Operational Restructure Drives Margin and Cash Flow Improvements
MyEco Group’s gross margin improved to 24.7% in the first half of FY26, up from 23.0% in the prior year period, reflecting better cost control and operational efficiencies. The company successfully executed an operational restructure in H1 FY26, which materially reduced its cost base and enhanced flexibility by leveraging production partners aligned with its sales and distribution strategy.
This restructuring contributed to a significant improvement in net operating cash outflows, which narrowed to just $0.1 million in Q2 FY26 compared to $1.4 million in the same quarter last year. The company ended the quarter with a healthy cash balance of $2.6 million, no bank debt, and an unused $1.0 million financing facility renewed in January 2026.
Strategic Growth Across Multiple Channels
MyEco Group continues to expand its product range and distribution footprint. In Australia, it holds category leadership in compostable bin liners and kitchen caddies across major retailers Coles and Woolworths, with market shares of 40% and 63% respectively. The company is also growing its presence in independent supermarkets and international markets, including Mexico, Canada, and the UK, where it recently secured initial orders from a major global distributor.
Despite challenges from U.S. tariff policy changes, the company saw a notable recovery in U.S. sales, up 424.5% quarter on quarter, albeit still down 46.3% year on year. Council and waste channel sales were impacted by delivery timing but remain on track with ongoing Food Organics Garden Organics (FOGO) program rollouts, particularly in Victoria and New South Wales, where government mandates are expected to drive further demand.
Innovation and Regulatory Engagement
MyEco Group is actively collaborating with the Solving Plastic Waste Cooperative Research Centre and Australian universities to develop advanced compostable resins, aiming to broaden applications and improve sustainability outcomes. The company is also engaged with industry associations to advocate for supportive policies, especially in light of pending regulatory decisions in Victoria concerning compostable bin liners.
Looking ahead, MyEco Group is confident that its refocused sales strategy, operational efficiencies, and product innovation position it well to achieve long-term sales growth and move towards positive EBITDA.
Bottom Line?
With record sales and improved cash flow, MyEco Group is poised for growth but must navigate regulatory uncertainties and tariff impacts.
Questions in the middle?
- How will the Victorian Government’s pending decision on compostable bin liners affect MyEco’s council sales?
- Can MyEco sustain and grow its U.S. market share amid ongoing tariff policy challenges?
- What impact will the expanded product range and new distributor partnerships have on H2 FY26 sales?