MyEco Group Halves Losses as Sustainable Packaging Sales Soar
MyEco Group Ltd reported an 8.6% revenue increase to $15.7 million in FY25, driven by strong growth in its MyEco® branded products and improved margins. The company cut its net loss by nearly half, supported by operational restructuring and expanding market presence.
- FY25 revenue rose 8.6% to $15.7 million
- Net loss after tax reduced 47.4% to $4.96 million
- MyEco® branded sales grew 81.8%, leading compostable packaging categories
- Operational restructuring to deliver $2.5 million in fixed cost savings in FY26
- CEO Richard Tegoni extended term; search underway for successor
Strong Revenue Growth and Margin Improvement
MyEco Group Ltd (ASX, MCO), a leader in sustainable packaging solutions, has reported solid financial progress for the full year ended 30 June 2025. Revenue from continuing operations increased 8.6% to $15.7 million, driven primarily by robust sales of its MyEco® branded compostable packaging products. Gross margin improved to 24.2%, up from 21.5% in the prior year, reflecting higher sales volumes and a more favourable customer mix.
Significant Reduction in Net Loss
The company narrowed its net loss after tax by 47.4% to $4.96 million, a marked improvement from the $9.42 million loss recorded in FY24. This progress was supported by the absence of a $3.57 million intangible asset impairment charge that weighed on the previous year’s results, alongside operational restructuring initiatives designed to streamline costs and enhance efficiency.
Operational Restructuring and Cost Savings
During FY25, MyEco Group undertook a strategic operational restructure, including rationalising manufacturing assets in Malaysia and relocating pilot production equipment to its commercial plant in China. These moves are expected to yield approximately $2.5 million in fixed cost savings in FY26. The company also relocated its Melbourne headquarters to lower-cost premises, further reducing overheads.
Market Expansion and Product Leadership
MyEco® branded products are now available in over 2,400 Australian stores and hold category leadership in compostable bin liners and kitchen caddies at major supermarket chains Coles and Woolworths. Internationally, sales to the USA surged 258%, supported by distribution partnerships with Jewett Cameron Company, which supplies Costco.com and Costco Mexico. The company also expanded its council customer base by 13%, now supplying 59 councils, benefiting from government mandates on food organics and garden organics (FOGO) waste programs.
Research and Development and Regulatory Engagement
MyEco Group continues to invest in R&D collaborations with the Australian Government’s Solving Plastic Waste Cooperative Research Centre and RMIT University to develop advanced compostable resins and films. The company is actively engaging with regulators, particularly in Victoria, to advocate for certified compostable products amid evolving waste management standards.
Leadership and Capital Position
CEO Richard Tegoni has extended his term through mid-2026, with a public search underway for his successor. The company remains debt-free aside from a $1.6 million convertible notes raising completed in May 2025 and holds $3.6 million in cash at year-end. No dividends were declared as the company focuses on growth and operational efficiency.
Bottom Line?
MyEco Group’s strategic repositioning and operational efficiencies set the stage for a potential return to profitability amid growing demand for sustainable packaging.
Questions in the middle?
- How will the company navigate regulatory uncertainties in Victoria regarding compostable product standards?
- What impact will the CEO succession have on MyEco Group’s strategic direction and growth momentum?
- Can the operational restructuring deliver the targeted $2.5 million cost savings and translate into positive EBITDA in FY26?
