MyEco Group Narrows FY26 Loss as Australian Retail Sales Hit Record $5.4m

Losses Shrink as Retail Sales Surge

MyEco Group Ltd (ASX:MCO) has tightened its net loss to $4.557 million for the year ended 30 June 2026, an 8.1% improvement on the previous year despite only a modest 0.8% rise in total revenue to $15.8 million. The company credits a reshaped revenue mix and a leaner cost base for the progress, signalling a turning point after years of restructuring.

Central to this turnaround is the company's pivot away from lower-margin resin and white-label products toward its own MyEco® branded sustainable consumer goods. Australian retail sales of MyEco® products soared 22.7% to a record $5.4 million, led by a 39.1% leap in compostable bin liner sales at Woolworths and Coles. This channel now accounts for about 34% of group revenue, while councils and waste management sales grew 5.9% to $5.0 million, together making up 66% of total revenue; a significant jump from 58% the year before.

Operational Overhaul Pays Dividends

Behind the improved bottom line is a $2.6 million reduction in cash payments to suppliers and employees, reflecting the completion of a major operational restructure. MyEco Group consolidated manufacturing in Nanjing, China, exited its Malaysia and Mexico operations, and embraced outsourcing partnerships to boost flexibility without capital expenditure. These moves shrank fixed production costs by $0.9 million and operating expenses by $1.9 million, underpinning a 49% improvement in normalised operating EBITDA to a loss of $1.876 million.

The company also launched a new range of fully Global Recycled Standard (GRS) certified post-consumer recycled (PCR) bin liners nationally through Woolworths, expanding its brand footprint beyond compostable products. Early sales and promotional support have been encouraging, positioning MyEco Group to tap into growing consumer demand for recycled household essentials.

Council Contracts and Market Tailwinds

MyEco Group strengthened its foothold in the councils and waste management sector, securing a new three-to-five-year supply agreement with Penrith City Council, expected to generate $1.36 million annually. The company also supported the rollout of Food Organics and Garden Organics (FOGO) programs, including a major initiative with Ballarat City Council covering over 55,000 households. These contracts align with the NSW Government’s mandate for universal FOGO services by 2030, offering a structural growth tailwind.

Despite international challenges, including tariffs and supply chain disruptions that saw US sales decline, MyEco Group remains focused on its high-margin Australian markets. The strategic exit from commoditised resin markets, particularly in Latin America, reflects a deliberate prioritisation of profitability over volume.

Financial Position and Leadership Strengthened

The company ended FY26 with a cash balance of $2.0 million, no bank debt, and an undrawn $1.0 million working capital facility secured against trade receivables. Operating cash outflows halved to $1.6 million, a testament to improved operational efficiency.

Leadership changes included the appointment of CEO Marie de Perthuis and CFO Yann Hessel, alongside a strengthened executive team tasked with executing growth strategies focused on retail and council channels. The board emphasised the company’s commitment to sustainable innovation and industry leadership through active participation in research collaborations and industry bodies.

What Lies Ahead for MyEco Group?

MyEco Group is poised to accelerate growth with new product launches and retail account expansions planned for the second half of FY27. The company aims to broaden the MyEco® brand into adjacent household essentials, leveraging its market leadership in compostable and recycled products. The council channel’s growth is expected to continue, driven by regulatory mandates and increasing adoption of FOGO programs.

While the company has not declared dividends, its improved margin profile and operational discipline offer a clearer path toward profitability. Investors may want to watch how MyEco balances growth investments with cash flow management, especially as it navigates competitive pressures and geopolitical uncertainties in its supply chain.