MyEco Group Posts Record Retail Sales as FY26 Strategy Shift Gains Pace

MyEco Group (ASX: MCO) recorded total sales of $15.8 million for the 2026 financial year, up 0.8% on the previous corresponding period, as stronger branded retail performance offset declines in lower-margin categories.

Australian retail sales rose 22.7% to reach $5.4m, while Q4 sales set a record of $1.5m.

The result reflected growing demand for MyEcoBag compostable products and the launch of new post-consumer recycled (PCR) bin liners, while white label, resin, and US sales weakened.

Australian retail and council waste management sales represented 65.6% of group revenue in FY26 compared with 58% in the previous period, as MyEco shifted its portfolio towards higher-margin products and channels.

Retail Growth Builds Momentum

Global sales of MyEcoBag products increased 7.6% to $5.7m in FY26, with Q4 sales rising 25.6% to $1.5m.

Sales of compostable bags through Woolworths Group (ASX: WOW) and Coles Group (ASX: COL) climbed 39.1% for the year and accelerated further in Q4, increasing 49.5% on the pcp and 25.4% quarter-on-quarter.

MyEcoBag held a 63% share of the category at Woolworths, up 1.4 percentage points, and a 46% share at Coles, up three percentage points against the comparative 12-month data.

The company launched its new PCR bin liners nationally at Woolworths during Q4 and began a supporting promotional campaign on 8 July 2026.

Council Demand Supports Mix

Council and waste management sales increased 5.9% to $5m, primarily reflecting the City of Ballarat organic-waste rollout and a one-off supply of kitchen bin caddies in the first quarter.

Q4 sales fell 10.3% from the previous quarter and 18% on the pcp to $1.1m after customer delivery timing reduced revenue during the period.

MyEco began FY26 with the Ballarat rollout before securing a multi-year supply contract with Penrith City Council and winning bag-supply tenders for Moira Shire and the City of Stonnington.

The group continues to bid for council organic-waste contracts as programs expand nationally, particularly in New South Wales.

Lower-Margin Categories Recede

White label product sales declined 19.5% to $2.2m, with delivery timing for UK customer Home Bargains shifting part of the order cycle into the 2027 financial year.

Wholesale resin sales fell 6.5% to $2.1m as demand softened in Malaysia, the group exited Latin America, and commoditisation compressed prices and margins.

US MyEcoBag sales dropped 61.6% to $0.4 m and were negligible in Q4, prompting MyEco to reduce its strategic emphasis on the market amid tariff uncertainty and disrupted supply chains.

Compostable film sales rose 16.4% to $0.8m, while a new PCR recycled pallet wrap passed final technical testing and is undergoing a market review ahead of commercialisation.

Profitability Strategy Takes Shape

MyEco is prioritising branded sustainable products, Australian retail and council customers as it seeks to restore profitability through higher sales and improved margins.

“We have a clear focus on delivering medium term profitability, and we intend to continue to build the longer-term value of the business by growing sales and improving margins by broadening our range of MyEco branded sustainable products, driven by ongoing innovation,” group chief executive officer Marie de Perthuis said.

“While we will focus primarily on our higher revenue generating, higher margin Retail FMCG opportunities and Councils business, we will continue to support our white label, resin and film customers.”

Management expects to provide a more detailed update on the next phase of its growth strategy in the coming weeks.