MyEco Group’s headline Q1 FY27 sales fell 7.8% to A$3.4 million, but the comparison was distorted by a large Ballarat council order last year. Excluding that one-off, sales rose 23.6%, while negative operating cash flow left the company with 2.3 quarters of funding before its post-quarter capital raising.
- Underlying Q1 sales up 23.6% excluding Ballarat’s one-off order
- Australian retail sales rose 40.9% year on year
- Market share increased at Woolworths and Coles
- A$1.121 million cash and A$0.601 million unused facility at quarter end
- A$0.6 million raised through the SPP and placement after quarter end
Underlying sales growth masks a softer headline quarter
MyEco Group Ltd (ASX:MCO) delivered a mixed September quarter, with reported sales falling 7.8% from a year earlier to A$3.4 million. The headline decline was largely mechanical: the prior corresponding period included a non-recurring A$0.9 million order from Ballarat City Council.
Strip out that order and Q1 FY27 sales increased 23.6%, according to the company. Australian retail was the main engine, with sales up 40.9% year on year, although total sales fell 14.8% from the June quarter as council orders fluctuated and Woolworths moved past the initial inventory build for MyEco’s new post-consumer recycled bin liner range.
Retail gains extend beyond Woolworths and Coles
MyEco’s compostable bin liners retained their leading positions in the two largest supermarket chains cited in the release. Market share reached 63.3% at Woolworths, up 1.3 percentage points from the prior corresponding period, and 45.5% at Coles, up 6.6 percentage points against the 12-month data to 29 September 2026.
The company’s Australian retail momentum builds on its FY26 recycled liner launch, which introduced GRS-certified post-consumer recycled bin liners nationally. Q1 sales of compostable bags at Woolworths and Coles rose 28.5% year on year to A$1.0 million, while MyEco said the new recycled range was showing encouraging national take-up, despite reorders being delayed as stores sell through their initial stock.
Distribution is also widening. Five products secured permanent shelf placement across more than 80 Ritchies IGA stores, four products entered 16 Cornetts IGA stores, and two products featured in a catalogue distributed across more than 90 Foodland stores. MyEco also received its first order for an improved compostable shopping bag range for distribution through the independent grocery network in December.
Council opportunity grows, but order timing remains uneven
Council and waste-management sales excluding Ballarat were A$0.8 million, up 3.0% year on year but down 30.2% from the June quarter. MyEco attributed the quarterly decline to the irregular timing of large council orders rather than a change to a recurring sales figure.
The company was awarded preferred supplier status by Mildura Rural City Council for certified compostable kitchen caddy liners, with forecast first-year revenue of approximately A$162,000 and deliveries expected to begin in January 2027. That is a future revenue opportunity, not revenue recognised in the September quarter. The award arrives as MyEco continues bidding for food-organics and garden-organics tenders, including a sector where it previously secured a Penrith FOGO supply contract.
Cash position improves after quarter end, but operations consumed funds
MyEco ended September with A$1.121 million in cash, no amount drawn on its receivables-backed facility and A$0.601 million of available financing capacity. Operating activities nevertheless used A$0.748 million during the quarter: customer receipts totalled A$4.069 million, against payments of A$4.811 million across manufacturing, staff, marketing, research and administration.
The Appendix 4C calculates total available funding at A$1.722 million and estimated funding of 2.3 quarters based on the quarter’s operating cash outflow. MyEco subsequently completed the shareholder funding plan and placement, raising A$0.6 million before costs in early October. The release says those funds will support the company’s growth strategy, but the quarter itself still showed a cash deficit and the financing facility is secured, variable-rate debt capacity rather than cash already on hand.
Amazon and new product launches set the next test
MyEco plans to launch an Amazon Australia shop in November with 12 products spanning compostable and recycled bin liners and pet-care products. It is also preparing a MyEcoWorld range of FSC-certified bamboo toilet tissue and paper towels for online launch in the second half of FY27, while expecting higher Woolworths and Coles trading around the December promotional period.
Those initiatives give the company several routes to broaden distribution, but they also shift attention from reported market share to sell-through, repeat ordering and cash conversion. The next quarter should show whether Woolworths reorders normalise, independent grocery placements produce sustained demand and the October capital raise buys enough time for growth to translate into improved operating cash flow.
Bottom Line?
The investment case now turns on whether strong retail demand and new distribution channels can lift cash generation before the reported funding runway tightens.
Questions in the middle?
- Will Woolworths’ recycled liner range move from initial stock build to consistent weekly reorders?
- Can independent grocery, Amazon and the new bamboo paper range generate incremental sales without adding disproportionate costs?
- How materially will the A$0.6 million post-quarter raising extend funding once the next quarter’s operating cash flow is measured?