Leading developer and manufacturer of sustainable packaging materials MyEco Group (ASX: MCO) has reported a strong set of numbers in the second quarter of the 2025 financial year, headlined by record quarterly sales for its namesake business unit.
In total, the company generated $4.1 million in sales for the quarter, marking a 32 per cent increase from the same time last year and a 10.6 per cent jump from three months prior.
Sales in MyEco branded products soar
MyEco Group reports its sales across five distinct business divisions: MyEco branded products, Council and Waste Management, Sustainable Resin, Sustainable Film, and White Label.
During the quarter, the MyEco branded products division was the star performer with global sales of $1.6 million surging by 156 per cent year-on-year and by 75.2 per cent from the previous quarter.
More specifically, this division’s American operations performed most admirably with a 296 per cent jump in sales quarter-on-quarter. In addition, the launch of compostable carry bags across 80 Ritchies supermarkets in Australia also helped to drive growth.
Management noted that the sale of sustainable products under the MyEco brand represents a key pillar for the group’s expansion strategy. It expects sales in this category to grow throughout the remainder of the 2025 fiscal year, steered by organic growth from existing products and sales to new customers.
Council and Waste management sales boost performance
Elsewhere, the Council and Waste Management division saw sales of $1.3 million jump by about 55 per cent from the previous corresponding period, and by 50 per cent in the past three months.
According to the company, sales in the second half of each financial year tend to be stronger for the Council and Waste Management division. It expects this to be the case again in FY25.
Amongst others, the recent successful tender for Ballarat Council in Victoria is projected to contribute some $900,000 in revenue in the fourth quarter of the fiscal year.
Growth opportunities in other divisions
Meanwhile, Sustainable Resin sales were down during the quarter following volatile market conditions in Latin America, characterised by longer delivery lead times and unattractive credit terms. The company will now seek to utilise its resin capacity for the manufacture of its own MyEco branded products which are performing at record levels.
The smaller Sustainable Film division also saw a dip in sales during the quarter. However, MyEco Group plans to continue developing high-speed compostable wrapping film products to target the growing and high-volume sustainable pallet and magazine wrap markets. Trials with several prospective customers are ongoing.
In conjunction, the company is also developing a distribution channel to help boost sales of its film products across major geographical markets.
Positive outlook for the future
Looking ahead, MyEco Group expects overall group sales to grow in the second half of the fiscal year, driven by its namesake branded products and greater traction from Australian councils.
More broadly, the company’s strategy is centred on leveraging its own brand – which it believes is number one in Australian supermarkets – and managing excess demand for its products through strategic partnerships instead of investing in manufacturing assets.
Management believes this strategy paves the way for a powerful blend of growth, quality, and cost efficiency for the group.