MyEco Group’s FY26 retail sales edged up 0.8% to $15.8 million, powered by a 22.7% surge in Australian branded product sales and a successful launch of certified recycled bin liners at Woolworths.
- FY26 total sales reach $15.8m, up 0.8%
- Australian MyEcoBag® retail sales jump 22.7%
- New GRS-certified recycled bin liners launched nationally
- Council FOGO waste sales grow 5.9% despite Q4 timing dips
- US and lower margin resin sales decline amid tariffs and supply chain issues
Australian Retail Sales Drive Growth
MyEco Group (ASX:MCO) reported record retail sales of $15.8 million for FY26, a modest 0.8% rise on the prior year, underpinned by strong momentum in its Australian branded product segment. The company’s MyEcoBag® compostable bin liners led the charge, with Australian retail sales soaring 22.7% to $5.4 million. This growth was fuelled by robust demand at major retailers Woolworths and Coles, where compostable bag sales jumped 39.1% year-on-year.
Quarterly sales in Australia peaked at $1.5 million in Q4 FY26, marking the highest volume of compostable bags sold since the product’s 2020 retail debut. Market share gains were notable, with MyEcoBag® capturing 63% of Woolworths’ category and 46% at Coles, reflecting incremental gains over the prior year.
Innovation with Certified Recycled Products
A highlight for the period was the successful national launch of fully Global Recycled Standard (GRS) certified Post-Consumer Recycled (PCR) bin liners at Woolworths in Q4 FY26. Early customer feedback has been positive, and the launch was supported by a promotional campaign beginning July 8, 2026. This product rollout exemplifies MyEco’s strategic pivot towards higher margin, sustainable innovations within its branded portfolio.
Council Waste Sales Show Mixed Results
Sales to councils and waste management providers, focused on kitchen caddy liners and pet waste bags, increased 5.9% to $5.0 million for FY26. This segment benefited from ongoing FOGO (Food Organics Garden Organics) program rollouts, notably with Ballarat City Council and a multi-year contract secured with Penrith City Council. However, Q4 sales were softer, down 10.3% quarter-on-quarter and 18.0% year-on-year, primarily due to the timing of customer deliveries.
Challenges in US and Lower Margin Segments
MyEco’s US retail sales slumped 61.6% to $0.4 million, with demand becoming negligible in Q4 FY26. The company cited uncertain economics driven by fluctuating US tariffs and supply chain disruptions linked to the Middle East crisis as key factors. This has led to a strategic de-emphasis on the US market in the upcoming growth phase.
Lower margin product lines, including white label and wholesale resin sales, also declined. White label sales dropped 19.5% to $2.2 million, affected by delivery timing to UK retailer Home Bargains and softer pet bag demand. Resin sales fell 6.5% to $2.1 million, impacted by the company’s exit from non-strategic markets and price compression amid commoditisation. Despite a strong quarter-on-quarter rebound in Q4 resin sales, these segments remain a lower priority as MyEco focuses on restoring profitability.
Emerging Opportunities in Compostable Film
Compostable film sales, a smaller part of the business, grew 16.4% to $0.8 million in FY26. Notably, MyEco has developed a new PCR recycled pallet wrap product, which passed final technical testing in Q4 and is poised for commercialisation pending a market review.
Operational Restructuring and Strategic Focus
CEO Marie de Perthuis, who joined seven months ago, highlighted the operational restructure completed in 2025 to reduce costs and boost productivity. She emphasised the company’s clear focus on medium-term profitability through expanding higher margin branded products and council contracts, while maintaining support for white label, resin, and film customers.
MyEco plans to provide a detailed update on its growth strategy in the coming weeks, aiming to capitalise on innovation and market leadership in sustainable packaging amid ongoing geopolitical and supply chain challenges.
Bottom Line?
MyEco’s pivot to higher margin Australian retail and council markets is gaining traction, but US market headwinds and timing issues in waste contracts pose near-term challenges.
Questions in the middle?
- How will MyEco’s new GRS-certified PCR bin liners impact margin and market share over FY27?
- What strategic shifts will the upcoming growth strategy update reveal, especially regarding the US market?
- Can MyEco sustain momentum in council FOGO tenders amid delivery timing volatility?