Highlights

  • MyEco Group shares rose 8.33% to AUD 0.013 on 29 April 2026 following its Q3 FY26 update.
  • Q3 FY26 sales reached AUD 4.0 million, up 4.1% year-on-year and 0.2% quarter-on-quarter.
  • Year-to-date sales stood at AUD 11.8 million, up 1.7% on the prior corresponding period.
  • Gross Margin improved to 24.8% year-to-date, up from 23.6%.
  • Net operating cash outflow of AUD 0.9 million driven by inventory build for upcoming product launch.
  • Cash balance of AUD 1.5 million at 31 March 2026, with additional funding commitments post quarter-end.

MyEco Group Ltd (ASX:MCO) shares increased by 8.33% to AUD 0.013 during the morning session on 29 April 2026, following the release of its Quarterly Activities Report for the period ended 31 March 2026. Despite remaining approximately 35% lower over the past year, the stock moved higher after the company reported continued sales growth and outlined progress across its key operating segments.

The quarterly update highlighted improvements in Revenue, Margin expansion, and ongoing operational adjustments, alongside preparations for a new product launch scheduled for the next quarter.

Company Overview

MyEco Group is a developer and manufacturer of sustainable packaging materials, focusing on biodegradable and compostable solutions. The company operates across multiple stages of the value chain, including resin production, bag Manufacturing, and film products.

Its product portfolio includes compostable bags, liners, and packaging materials supplied to retailers, councils, and corporate customers globally. MyEco Group maintains operations and distribution networks across Australia, Asia, Europe, and the Americas.

The company’s strategy centres on expanding its presence in sustainable packaging markets while improving operational efficiency and aligning product offerings with regulatory and environmental trends.

Sales Growth Continues Across Key Channels

MyEco reported total sales of AUD 4.0 million for Q3 FY26, representing a 4.1% increase compared to the prior corresponding period and a modest 0.2% rise compared to the previous quarter. On a year-to-date basis, sales reached AUD 11.8 million, up 1.7% compared to the same period last year.

Performance across segments showed varying trends. Retail channel sales were AUD 2.0 million for the quarter, increasing 1.7% year-on-year but declining 9.5% compared to the prior quarter, reflecting a strong seasonal performance in Q2 associated with festive Demand.

Within retail, MyEco branded Australian sales reached AUD 1.4 million, up 10.4% compared to the prior corresponding period. Sales to major Australian retailers Coles and Woolworths recorded a 46.2% increase year-on-year, although this was partially offset by lower sales to independent retailers.

The council and waste management channel reported sales of AUD 1.3 million, representing a 41.6% increase quarter-on-quarter and a 2.1% rise year-on-year. Year-to-date sales in this segment increased 13.8%, supported by ongoing Demand from municipal waste programs.

Corporate channel sales totalled AUD 0.7 million, increasing 15.6% year-on-year but declining 17.3% compared to the previous quarter. The segment is largely driven by resin sales, which experienced variability due to changing market conditions.

Product Performance and Market Position

MyEco highlighted continued performance of its MyEcoBag products within major Australian retail chains. The company noted that its compostable bin and caddy liners maintain leading market shares of 42% in Coles and 62% in Woolworths.

White label product sales reached AUD 0.6 million for the quarter, increasing 14.4% quarter-on-quarter and 20.5% year-on-year. This growth was supported by new orders from customers such as Home Bargains and BUNZL, as well as recurring Demand from existing clients.

In international markets, sales to the United States declined significantly both quarter-on-quarter and year-on-year, reflecting variability in Demand.

Council and Waste Channel Expansion

The council and waste segment remains an area of focus, with the company supplying compostable liners and waste bags to local councils and waste management providers. Growth in this segment is supported by the rollout of food organics and garden organics (FOGO) programs across Australia.

During the quarter, MyEco reported success in tender processes, securing one contract win and being named as a preferred tenderer in another. These outcomes provide opportunities for multi-year Supply agreements.

The company also plans to participate in the Coffs Waste Conference in May 2026 to engage with councils and promote its product capabilities.

Margin Improvement and Operational Changes

Gross Margin for the year-to-date period improved to 24.8%, compared to 23.6% in the prior corresponding period. This increase was attributed to operational improvements and a more favourable product mix.

MyEco continues to implement an operational restructuring program initiated in the first half of FY26. The restructuring has contributed to reduced costs and improved efficiency, with lower cash outflows compared to the prior year.

The company noted that the restructuring has also increased flexibility in scaling production through external partners, reducing Capital requirements.

Cash Flow and Financial Position

For Q3 FY26, MyEco reported a net operating cash outflow of AUD 0.9 million. This was primarily driven by an increase in inventory levels in preparation for the launch of a new MyEcoBag product range scheduled for Q4 FY26.

Cash receipts from customers totalled AUD 4.3 million, while payments to suppliers and employees amounted to AUD 5.4 million. The increase in payments reflects higher production activity to support expected Demand in the upcoming quarter.

Capital expenditure during the quarter was minimal at AUD 0.02 million.

At 31 March 2026, the company held cash and cash equivalents of AUD 1.5 million. It also has access to an unused financing Facility of up to AUD 1.0 million.

Subsequent to the quarter, MyEco secured commitments of approximately AUD 0.92 million through its Series 2 Convertible Note Program, providing additional Liquidity.

Total available funding, including cash and unused facilities, was approximately AUD 2.5 million, representing an estimated 2.7 quarters of funding based on current cash usage.

Payments to related parties during the quarter totalled approximately AUD 139,000, relating to director remuneration and associated costs.

Product Launch and Strategic Outlook

Looking ahead, MyEco is preparing to launch a new sustainable MyEco branded product range in Q4 FY26. The launch is expected to take place across retail and online channels, supported by inventory build-up during the current quarter.

The company also outlined plans to expand its retail footprint within Australia by acquiring new accounts and increasing penetration within existing customers such as Coles and Woolworths.

In the council and waste segment, MyEco is positioning itself to benefit from regulatory changes, including requirements for organic waste separation in New South Wales from July 2026. The company is investing in sales and Marketing initiatives and developing additional services to support councils adopting FOGO programs.

Management also expects continued benefits from cost reductions achieved through its operational restructuring, alongside improved scalability of production.

What This Means for Investors?

MyEco Group’s latest quarterly update highlights modest Revenue growth, improving margins, and continued activity across its core sales channels. The upcoming product launch and expansion initiatives provide context for the company’s near-term strategy.

The share price increase on 29 April 2026 appears to reflect investor response to these developments, including consistent sales performance and operational adjustments.

At the same time, the company continues to manage Cash Flow and funding requirements while preparing for future growth initiatives. Investors may monitor execution of the product launch, performance across key channels, and progress in securing new contracts within the council and waste segment.