Myeco Group Ltd · ASX:MCO
Myeco — H1 FY2025 Earnings Presentation
29 slides from Myeco's earnings presentation, Feb 20, 2025
Slide 1: H1 FY25 Half Year Results Presentation
H1 FY25 HALF YEAR RESULTS PRESENTATION MYECO GROUP (ASX: MCO) FEBRUARY 2025
Slide 2: Presentation Covers
PRESENTATION COVERS: • Company Identity Re-Brand • H1 FY25 Highlights & Operational Update • H1 FY25 Financial Results • Strategy & Outlook MYECO GROUP LTD (ASX: MCO) 2 FY25 HALF YEAR RESULTS PRESENTATION
Slide 3: Company Identity Re-Brand
MYECO GROUP LTD (ASX: MCO) MYECO GROUP (ASX: MCO) COMPANY IDENTITY RE-BRAND 3 FY25 HALF YEAR RESULTS PRESENTATION FY25 HALF YEAR RESULTS PRESENTATION
Slide 4: Strategic Re-Brand
STRATEGIC RE-BRAND In November 2024, the Company rebranded from SECOS Group to MyEco® Group. This evolution ties our identity to our mission, enhances brand recognition, and builds on the proven success of the “MyEco®” brand—establishing a more memorable presence with greater appeal and growth poten
Slide 5: Making Your Everyday Sustainable
Making Your Everyday Sustainable. MYECO GROUP LTD (ASX: MCO) 5 FY25 HALF YEAR RESULTS PRESENTATION
Slide 6: Belief, Mission, Vision
Belief We can profoundly improve the prosperity of our planet with sustainable alternatives to the products that people use every day – alternatives that seamlessly fit into and enhance modern life. Mission We are here to develop and deliver eco-friendly innovations that make it easy for society to
Slide 7: Core Values
CORE VALUES Sustainability Integrity We deliver positive We hold ourselves environmental outcomes accountable to deliver on our at each step of the environmental commitments production and product with transparency and ethical life cycle. practices. Quality Accessibility We strive for excellence in
Slide 8: Highlights & Operational Update
HIGHLIGHTS & OPERATIONAL MYECO GROUP LTD (ASX: MCO) MYECO GROUP (ASX: MCO) UPDATE 8 FY25 HALF YEAR RESULTS PRESENTATION FY25 HALF YEAR RESULTS PRESENTATION
Slide 9: Strong Growth vs H1 FY24
STRONG GROWTH VS H1 FY24 Strong H1 FY25 sales growth of 24.6% vs Prior Comparative Period (PCP) • MyEco® branded product sales of $2.6m in H1 FY25, up 111.9% on PCP • Council and waste management sales of $2.1m in H1 FY25, up 28.7% on PCP • Resin sales of $1.6m in H1 FY25, down 18.9% on PCP MYECO GR
Slide 10: H1 FY25 Sales by Product Segment
H1 FY25 SALES BY PRODUCT SEGMENT • MyEco® branded global sales up 111.9% on PCP driven by • Increase in retail sales via Woolworths, Coles throughout Australia & the launch of compostable carry bags into 76 Ritchies stores • Increased sales to Costco.com and Costco Mexico, and to KeHe and UNFI (Unit
Slide 11: H1 FY25 Sales by Product Segment: MyEco Branded
H1 FY25 SALES BY PRODUCT SEGMENT MyEco Branded Product (Global) Sales $3,000,000 • H1 FY25 MyEco® Branded global sales grew by 111.9% on PCP - a record six months of $2.6m $2,500,000 • MyEco® Branded products sold in over 2400 $2,000,000 Australian stores comprising 1,111 Woolworths stores, 858 Cole
Slide 12: H1 FY25 Sales by Product Segment: Councils/Waste
H1 FY25 SALES BY PRODUCT SEGMENT Councils/Waste Sales • H1 FY25 sales increased by 28.7% on $3,500,000 PCP $3,000,000 • Increased supply to 56 councils (Jun- 24: 52 Councils) $2,500,000 • FOGO rollout programs expected to continue as more local governments $2,000,000 strive to achieve their 2025 sus
Slide 13: H1 FY25 Sales by Product Segment: Resin
H1 FY25 SALES BY PRODUCT SEGMENT Resin Sales • H1 FY25 Sales decreased by 18.9% on $3,000,000 PCP • Market conditions for the sale of the $2,500,000 Company’s resins are volatile, especially in LATAM $2,000,000 • MyEco Group maintains resin supply partnerships with key distributors and $1,500,000 co
Slide 14: Research and Development Capabilities
RESEARCH AND DEVELOPMENT CAPABILITIES Solving Plastic Waste Cooperative Research Centre • MyEco Group is working with the Australian Government funded Solving Plastic Waste Cooperative Research Centre, as well as RMIT scientists, to develop new compound formulations and film structures to replace pl
Slide 15: Product Development Capabilities
PRODUCT DEVELOPMENT CAPABILITIES Global Product Development Centre drives sustainable NPD PIPELINE INCLUDES: product development including : Pallet Wrap Magazine Wrap Produce • Netting: for produce, agriculture & landscaping. Produce Netting certification approved in Q1 FY25 • Magazine Wrap: Newly d
Slide 16: Leader in Evolving Australian Regulatory and Market Landscape
LEADER IN EVOLVING AUSTRALIAN REGULATORY AND MARKET LANDSCAPE MyEco Group is committed to advocating for policies that support certified compostable solutions and align with circular economy goals. Victoria • In June 2024, Recycling Victoria released a draft Household and Recycling Service Standard,
Slide 17: Leader in Evolving Australian Regulatory and Market Landscape (Continued)
LEADER IN EVOLVING AUSTRALIAN REGULATORY AND MARKET LANDSCAPE (CONTINUED) New South Wales & Western Australia • Beyond Victoria, MyEco® Group is actively engaging with policymakers across Australia. • In December 2024, a constructive meeting was held with the NSW EPA, where officials reaffirmed thei
Slide 18: H1 FY25 Financial Results
H1 FY25 FINANCIAL RESULTS MYECO GROUP LTD (ASX: MCO) FY25 HALF YEAR RESULTS PRESENTATION
Slide 19: H1 FY25 Profit and Loss
H1 FY25 PROFIT AND LOSS (CONTINUING OPERATIONS) $’000 H1 FY25 H1 FY24 Var (%) Sales 7,716 6,193 24.6% • H1 FY25 Group sales increased by 24.6% as outlined Gross Profit 1,775 1,089 63.0% by product segment on earlier slides Gross Margin % 23.0% 17.6% 542 bps Employment related expense (2,013) (1,718)
Slide 20: Ongoing Gross Margin Improvement
ONGOING GROSS MARGIN IMPROVEMENT (CONTINUING OPERATIONS) GROSS MARGIN % 23.0% 22.3% 20.5% 18.8% H2 FY23 H1 FY24 H2 FY24 H1 FY25 • Gross margin improvement driven by increases sales volumes and improved customer mix MYECO GROUP LTD (ASX: MCO) 20 FY25 HALF YEAR RESULTS PRESENTATION
Slide 21: Balance Sheet
BALANCE SHEET • Cash balance at 31 December 2024 was $3.5m $’000 Dec Jun Var % 2024 2024 with no debt Cash at Bank 3,548 6,108 (41.9%) • Current ratio of 2.5x compared to 3.8x at 30 Trade and Other Receivables 2,882 3,246 (11.2%) June 2024 Inventories 4,604 3,169 45.3% • Inventory increased by $1.4m
Slide 22: Cash Flow
CASH FLOW $’000 H1 FY25 H1 FY24 • Closing cash of $3.55m with no debt as at 31 December 2024 Opening Cash 6,108 8,424 • Cash Flows from Operating Activities Cash Flows from Operating in H1 FY25 impacted by required (2,144) (386) Activities increases in production to build up Cash Flows from Investin
Slide 23: Strategy & Outlook
MYECO GROUP LTD (ASX: MCO) STRATEGY & OUTLOOK 23 FY25 HALF YEAR RESULTS PRESENTATION MYECO GROUP (ASX: MCO) FY25 HALF YEAR RESULTS PRESENTATION
Slide 24: Strategic Repositioning for Growth
STRATEGIC REPOSITIONING FOR GROWTH On 10 February 2025 the Company announced that it had refined its sales strategy and conducted a strategic review of operations to cost-effectively support both existing record MyEco® branded sales and anticipated accelerated growth in overall sales volumes for its
Slide 25: Vertically Integrated Manufacturing and Global Distribution
VERTICALLY INTEGRATED MANUFACTURING AND GLOBAL DISTRIBUTION • Rationalised resin, bag and film manufacturing with access to world markets • Utilise partnerships with Convertors to grow production capacity without further significant investment in CAPEX • Partner with convertors on product developmen
Slide 26: Outlook
OUTLOOK ● Strategic repositioning and operational restructuring will reduce costs materially, with increased flexibility to scale production through the use of production partners better aligned to support sales growth expected in the H2 FY25 and beyond ● MyEco branded® products: ● Organic growth ex
Slide 27: Outlook (Continued)
OUTLOOK (CONTINUED) ● Product Development: ● Continue to develop technologically advanced resins, in collaboration with the Solving Plastic Waste Cooperative Research Centre and leading Australian universities, to further enhance sustainability ● Further progress development of new products prioriti
Slide 28: Forward-Looking Statements Disclaimer
FORWARD-LOOKING STATEMENTS DISCLAIMER This presentation contains “forward-looking statements.” Such forward-looking statements may include, without limitation: • estimates of future earnings; • estimates of future production and sales; • estimates of future cash costs; • estimates of future cash flo
Slide 29: MYECO GROUP LTD (ASX: MCO) FY25 HALF YEAR RESULTS PRESENTATION
MYECO GROUP LTD (ASX: MCO) 29 FY25 HALF YEAR RESULTS PRESENTATION