MyEco Posts $5.4M Record Retail Sales in FY26 as Restructure Cuts Losses 49%
Key Takeaways
- MyEco Group recorded record Australian Retail MyEco® sales of $5.4m (+22.7%) in FY26, with combined Coles and Woolworths growth of +39.1% and a greater than 50% category sales share in compostable bin liners at both retailers as of June 2026.
- Normalised Operating EBITDA improved 49% to ($1.9m), driven by a $2.8m cost base reduction following the completion of a full operational restructure — the company remains loss-making but the trajectory is materially improving.
- Strategic channels — Australian Retail and Council & Waste — now account for 66% of total revenue, up from 41% in FY23, reflecting a deliberate shift toward higher-margin, recurring demand segments.
- MyEco secured a 3-to-5-year supply contract with Penrith City Council in Q4 FY26, with expected annual revenue of $1.36m, extending an 8-year supply relationship and adding contracted Council revenue visibility.
- Management will share a detailed growth-and-profitability strategy via a CEO webinar in the week commencing 14 September 2026 — the next material catalyst for investors to watch.
MyEco Group delivers record Australian retail sales in FY26 as restructure reshapes the business
In its FY26 full-year results presentation delivered August 2026, MyEco Group outlined a year of significant strategic progress. The company recorded record Australian Retail MyEco® sales of $5.4m (+22.7%) and delivered a 49% improvement in Normalised Operating EBITDA to ($1.9m) — a narrowing loss, not profitability. Total Group sales reached $15.8m (+0.8%), with strategic channels now accounting for 66% of revenue, up from 41% in FY23. The presentation detailed a leaner, refocused business emerging from a completed operational restructure, with growth concentrated in higher-margin channels.
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FY26 financial performance highlights
Management highlighted key financial metrics that underscore the restructure’s impact. Operating expenses fell 22%, driven by a $2.8m cost base reduction — the engine behind the EBITDA improvement. Normalised Gross Margin expanded to 23.8% (+1.9pt), reflecting a favourable shift toward Australian Retail and Council sales. What this tells you is that MyEco is compressing losses through operational discipline, not top-line expansion alone.
- Record Australian Retail MyEco® sales: $5.4m (+22.7%)
- Normalised Operating EBITDA: ($1.9m), a 49% improvement
- Normalised Gross Margin: 23.8% (+1.9pt)
- Strategic channel revenue share: 66% (+8pt)
- Operating cashflows: ($1.6m), a $1.5m improvement
- Closing cash: $2.0m, plus up to $1.0m available facility, nil bank debt
| Metric ($’000) | FY26 | FY25 | Var % |
|---|---|---|---|
| Sales | 15,818 | 15,696 | +0.8% |
| Gross Margin | 3,763 | 3,439 | +9% |
| Gross Margin % | 23.8% | 21.9% | +1.9pt |
| Operating Expenses | (5,873) | (7,551) | -22% |
| Normalised Operating EBITDA | (1,876) | (3,656) | +49% |
| Normalised EBITDA | (2,240) | (3,144) | +29% |
| NPBT | (4,564) | (4,943) | +8% |
| NPAT | (4,557) | (4,958) | +8% |
The $2.8m cost base reduction from the restructure is the single largest contributor to EBITDA improvement. MyEco remains loss-making, but the trajectory points toward profitability as the strategic channel mix continues to shift.
Strategic channels now drive two-thirds of revenue
MyEco’s deliberate pivot toward Australian Retail and Council & Waste — the two strategic sales channels defined by healthier margin profiles and sustained growth trajectories — delivered measurable results in FY26. These channels now represent 66% of total revenue, up 8 percentage points from FY25.
The retail performance anchored the year. MyEco achieved a >50% category sales share in compostable bin liners at Coles and Woolworths (June 2026), with combined Coles and Woolworths growth of +39.1%. In June 2026, the company launched a new GRS-certified PCR range at Woolworths nationally — three incremental SKUs with exceptional shelf space and impactful layout, backed by a retail media partnership through Cartology. MyEco also achieved finalist recognition at the 2025 Woolworths Trade Partners Awards in the Small Grocery category.
Council & Waste sales reached $5.0m (+5.9%) in FY26, underpinned by an average growth rate of 6.8% per half since FY23. While demand remains sporadic due to the timing of council FOGO (Food Organics and Garden Organics) rollouts, the underlying trajectory is consistent. The Ballarat City Council FOGO rollout launched in Q1 FY26, covering over 55,000 residential households. In Q4 FY26, MyEco secured a 3-to-5-year supply contract with Penrith City Council, with expected annual revenue of $1.36m — an extension of an 8-year trusted supply relationship. The NSW Government’s FY30 organic waste separation mandate for supermarkets, institutions, and hospitality businesses creates a structural demand tailwind for compostable bin liners.
The rest of the portfolio, right-sized
The presentation outlined performance across non-strategic channels, framed as deliberate right-sizing to align with demand and margin profiles rather than operational deterioration:
- International Retail: $0.4m (-61.6%) — variability of demand in the US
- White Label: $2.2m (-19.5%) — timing of deliveries to Home Bargains (UK) and increasing price pressure
- Wholesale Resin: $2.1m (-6.5%) — softening demand in Malaysia and exit from Latin America at the end of FY25
- Film: $0.8m (+16.4%)
These declines are not signs of distress. They reflect a strategic de-emphasis of lower-margin, capital-intensive channels in favour of the retail and council segments.
What FOGO and compostable bin liners mean for MyEco
FOGO stands for Food Organics and Garden Organics — a kerbside collection system that separates organic waste from general rubbish for composting. Compostable bin liners are designed to break down alongside the organic waste, making household participation in FOGO programmes easier and more hygienic. Government mandates, like the NSW FY30 requirement for businesses to separate organic waste, are driving adoption across councils and retailers.
For MyEco, this creates structural, recurring demand. As more councils roll out FOGO and retailers expand compostable product ranges, the company benefits from category leadership in a growing, regulation-backed market. This is not a trend-driven opportunity — it is a legislated shift in waste management infrastructure.
Restructure sets an asset-light foundation
MyEco’s completed FY26 operational restructure is the strategic pivot that underpins the margin story. Management detailed the key moves:
- Exited two Malaysian manufacturing facilities and relocated production to the Nanjing, China plant
- Established outsourced manufacturing partnerships for production capacity flexibility at no capital cost
- Relocated pilot R&D equipment from Melbourne to Nanjing to reduce costs for new product trials and accelerate innovation
- Exited the Mexico resin business — a commoditised, lower-margin segment
- Strengthened leadership with a new CEO, CFO, Chief Growth Officer, and COO (internal promotion), plus a Head of Retail and Channel Growth and a Council Business Development Lead
The payoff is a $2.8m cost base reduction, greater production flexibility, and lower-cost, faster product trials. The company ended FY26 with $2.0m in cash and no bank debt. Borrowings of $2.787m represent convertible notes and related party loans — the convertible notes are mandatorily convertible into shares on maturity. Operating cashflows improved 47% to ($1.6m), with payments to suppliers and employees down $2.6m.
In April 2026, MyEco raised $881k net via the Series 2 Convertible Notes Programme. The company also holds up to $1.0m in available receivables-backed financing, with $815k available as at 30 June 2026 (nil drawn).
Management commentary
The restructure positions MyEco with a scalable, asset-light operating model aligned to the company’s refocused sales strategy, with growth expected to be driven primarily by Retail and Council & Waste channels.
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Outlook and the road to profitability
Management outlined forward growth drivers in the presentation. The company expects continued sales growth at Coles and Woolworths, supported by the new Woolworths GRS-certified PCR range launched in June 2026. MyEco is targeting new Australian retail accounts with a strong focus on Independents and has a pipeline of new sustainable consumer products targeted for launch from H2 FY27. In the Councils channel, the company is continuing to invest in sales and marketing efforts to support the NSW Government mandate.
The benefit of the reduced manufacturing cost base and scalable outsourced production arrangements is expected to continue into FY27. Management flagged a key catalyst: a detailed growth-and-profitability strategy will be shared in the week commencing 14 September 2026, via a webinar with CEO Marie de Perthuis.
MyEco is positioned for sustainable growth due to:
- Category leadership in compostable household bags
- Increasing Coles and Woolworths penetration
- Structural FOGO rollout tailwind
- Asset-light, scalable model post-restructure
- Expanding sustainable products platform
- Clear pathway toward profitability
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