MyEco Group Ltd (ASX:MCO) Announces Strategic Repositioning for Growth
Strategic Repositioning
MyEco Group Ltd (ASX: MCO) is advancing its strategy to become a global leader in sustainable packaging. The Board and management are refining the sales strategy and reviewing operations to support record sales and anticipated growth.
Strategic Focus
The company aims to make MyEco® branded products the core of its growth strategy, driven by biopolymer technology innovation. The brand leads the compostable bin liner category in Australian supermarkets and is expanding internationally.
Production Strategy
Increased sales allow scaling production through strategic partnerships with high-end converters, reducing the need for new manufacturing assets. The company is rationalising manufacturing in Malaysia and relocating pilot equipment to its Nanjing, China plant.
Sales and Distribution Strategy
MyEco Group is securing new global distributors to drive sales growth. Recent partnerships include Jewett-Cameron Company for Costco in the US, Canada, and Mexico and introducing reusable compostable bags to Ritchies in Australia.
Head Office Relocation
The Melbourne head office and product development centre will move to lower-cost premises in Q3 FY25, saving on rental and overhead costs.
Outlook
The company expects strategic repositioning and operational restructuring to reduce costs and enhance production flexibility, aiming for positive EBITDA in the medium term. An update will follow as initiatives are implemented.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended MyEco Group Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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