Compostable products manufacturer MyEco Group (ASX: MCO) has delivered record Australian retail sales of $5.4 million in FY26, a 22.7 per cent jump on the prior corresponding period, driven by surging demand for its compostable bags at Woolworths and Coles.
Total group sales for the year came in at $15.8 million, up 0.8 per cent on the prior year, with the company's flagship MyEcoBag brand generating global sales of $5.7 million, a 7.6 per cent increase.
The news sent MyEco shares more than 68 per cent higher to a near-two-year high of 3.2c a share this morning.
The company's fourth quarter proved particularly strong, with Australian retail sales hitting a record $1.5 million for the period.
Compostable bag sales through Woolworths and Coles climbed 39.1 per cent on the prior corresponding period, underpinning the domestic retail momentum.
MyEco Group, which manufactures certified compostable bin liners, bags and related products, has been steadily growing its supermarket shelf presence.
Market share at Woolworths rose 1.4 percentage points to 63 per cent, while share at Coles lifted 3 percentage points to 46 per cent.
The company also launched GRS-Certified Post-Consumer Recycled bin liners at Woolworths nationally during the fourth quarter, expanding its product range beyond compostable lines.
Council and food organics garden organics sales contributed $5 million for the full year, up 5.9 per cent, as local government adoption of organic waste collection programs continued to expand.
MyEco Group CEO Marie de Perthuis says since she was appointed seven months ago the company has made significant progress in developing and executing its growth strategy and implementing an operational restructure initiated in 2025 to reduce costs and improve productivity.
"The recent launch of our new fully GRS-certified Post-Consumer Recycled bin liners has been an exciting development," she says.
"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.
"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. I look forward to providing a more detailed update on our growth strategy in the coming weeks.”
The company says domestic strength was offset by a sharp decline in US sales, which fell 61.6 per cent to $0.4 million as tariff uncertainty and supply chain disruption weighed on the company's American operations.
White label sales also retreated 19.5 per cent, while resin sales fell 6.5 per cent.
MyEco reported an NPAT loss of $4.958 million in FY25, with closing cash of $3.618 million, but no profit or cash flow data has been disclosed for the FY26 period alongside the unaudited sales update.
The company has flagged its medium-term focus on driving profitability through continued growth in its Australian retail and council channels while navigating headwinds in its international and white label segments.
Shares in MyEco Group were trading 47 per cent higher at 2.9c each at 11.10am (AEST).
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