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- Infant formula producer Bubs Australia (BUB) has frozen its shares prior to a capital raise announcement
- Company shares will stay locked up in back-to-back trading halts until September 4, unless Bubs can disclose details of the raise before that date
- At this time, it’s unclear just how much the consumer stalwart wants to raise or what it will use the capital for
- In addition to today’s trading halt, Bubs also released its full-year results
- The formula producer drove up its revenue and drastically decreased its loss margin over FY20
- By June 30, Bubs counted just over $26 million in the bank, up from more than $24 million reported at the end of FY19
- Bubs shares last traded for 91.5 cents on Friday, August 28
Infant formula producer Bubs Australia (BUB) has frozen its shares prior to a capital raise announcement.
Company shares will stay locked up in back-to-back trading halts until September 4, unless Bubs can disclose details of the raise before that date.
At this time, it’s unclear just how much the consumer stalwart wants to raise or what it will use the capital for.
In addition to today’s trading halt, Bubs also released its full-year results. The formula producer drove up its revenue and drastically decreased its loss margin over FY20.
All up, Bubs tabled $61.7 million in gross revenue — a 32 per cent increase on the prior financial year.
The consumer stock also recorded $7.8 million in net losses, however, it’s a 78 per cent improvement on FY19’s $35.5 million loss.
Of course, Bubs’ shareholders won’t receive a final dividend, meaning there’s still a way to go before they can profit off their current holding.
Over the year, the company tabled $65.5 million in customer receipts, but it wasn’t enough to cover $87.4 million in supplier and employee payments. It means Bubs went cashflow negative by nearly $22 million over FY20.
By June 30, Bubs counted just over $26 million in the bank, up from more than $24 million reported at the end of FY19.
Bubs shares last traded for 91.5 cents on Friday, August 28.
