MyEco Group achieves record sales in Q2

Record quarter for MyEco branded global sales, up 155.8% on pcp to Q2 FY25
Council and waste management sales of $1.3m in Q2 FY25, up 55.1% on pcp
Strong growth in global sales along with council and waste management sales drives record quarter

Special Report: Newly rebranded MyEco Group Ltd (ASX: MCO) achieved record sales for MyEco sustainable products of $1.6 million to retailers in Australia and the US in Q2 FY25, up 155.8% on prior corresponding period (pcp) and 75.2% quarter on quarter (QoQ).

The developer and manufacturer of sustainable packaging and materials said total sales of sustainable products of $4.1m for Q2 FY25 was up 32.0% on pcp and 10.6% QoQ.

The company said the record quarter was primarily due to strong growth in MyEco-branded global sales along with council and waste management sales.

Growth initiatives have delivered $500k sales in Q2 FY25 in the US with MyEco Group distributor Jewett Cameron Company (JCC) increasing orders of MyEcoWorld sustainable bags.

JCC’s increase in orders was to supply Costco.com and Costco Mexico and continue to work with KeHe and UNFI (United Natural Foods Inc.), two of the largest wholesale distributors in North America.

During the quarter the company announced it was rebranding from SECOS Group to MyEco Group to better support its expanding global operations, range of products and reflect its commitment to sustainability.

Ritchies IGA growth momentum continues

MyEco Group said the launch of compostable carry bags into 80 Ritchies IGA stores in Q1 FY25 continued momentum with stronger sales into Q2 FY25 and $600k advanced orders received for delivery in Q3 FY25.

Replacing paper and plastic retail check-out bags with reusable compostable bags will be an area of focus as MyEco Group looks to leverage success with Ritchies to increase stores and retailers using its sustainable solution to the world’s plastic problem.

MyEco Group said sustainable products are a key pillar of the company’s growth strategy with sales growth in this category expected continue in the remainder of FY25, driven by organic growth of existing products including sales to new customers.

Growth in council and waste management

MyEco Group said council and waste management sales in Q2 FY25 were up 55.1% on pcp and 50.3% QoQ with sales for H1 FY25 up 28.7% on pcp.

The national reach of the company’s product supply increased from 52 councils to 56 councils within the past six months to the end of December 2024.

MyEco Group said sales in the second half of each financial year were typically stronger, and it expected this to be the case for FY25 due to the preference for Council FOGO (food organics, gardening organics) rollouts to occur in the months transitioning from summer to autumn.

The company said this was further demonstrated by the recent successful tender in Victoria for Ballarat Council, servicing 51,000 residential households, which is projected to add $900k in revenue in Q4 FY25.

Growth in sales to local councils is expected to increase in H2 FY25.

Focus on building resin capacity for MyEco products

MyEco Group said sustainable resin sales were down in Q2 FY25 41.5% on pcp and 49.5% QoQ.

The company said market conditions for the sale of is resins in LATAM remained volatile with longer delivery lead times and unattractive credit terms creating a disincentive for the business to expand resin sales in the region.

While aiming to continue to build mutually beneficial partnerships for the sale of its resins, the company said it would focus on using its resin capacity for the manufacture of its own MyEco branded products, which have been performing at record levels and are expected to continue to grow.

MyEco Group said it aims to develop future grades of resins to meet the growing need for sustainable products.

Meanwhile, sustainable film sales representing a relatively small component of the business at $200k for Q2 FY25 were down 9.2% on pcp and 34% QoQ.

As part of the medium-term strategy, MyEco Group said it would continue development of high-speed compostable wrapping film products, targeting the growing, high-volume sustainable pallet and magazine wrap markets, which is being trialled with several prospective customers.

The company in parallel is developing a distribution channel to support the sale of its compostable and sustainable film products in major geographical markets.

MyEco Group said it expects to grow overall group sales in H2 FY25. It said the combination of being fully integrated from resin, film and bags and having the option to manage growing demand through partnerships would offer a powerful blend of growth, quality and cost efficiency.

This article was developed in collaboration with MyEco Group, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.