- Bubs Australia’s (BUB) gross revenue for the September quarter has increased 96 per cent year-on-year to $18.5 million
- Bubs’ infant formula segment saw its gross revenue increase 124 per cent and the adult goat milk powder segment’s gross revenue grew 100 per cent year-on-year
- Domestic sales contributed 23 per cent of quarterly sales and declined 13 per cent, due to a discontinued revenue stream from a business-to-business customer
- At the end of the September quarter, Bubs had $28.3 million in cash which was a slight increase to the $27.9 million it started with
- Company shares are up 22.2 per cent to trade at 44 cents at 12:13 pm AEDT
Bubs Australia’s (BUB) gross revenue increased 96 per cent year-on-year to $18.5 million for the September 2021 quarter.
The group revenue also represents a 45 per cent growth on the previous quarter which the company attributes to its individual business segments.
Bubs Infant Formula’s gross revenue increased 124 per cent year-on-year and 64 per cent on the prior quarter. Similarly, Adult Goat Milk Powder’s gross revenue grew 100 per cent on the prior year and was up 61 per cent on the June quarter.
In terms of domestic and international sales performance, domestic sales contributed 23 per cent of quarterly sales and declined 13 per cent on the previous year. This was mainly due to a discontinued revenue stream of fresh milk to a customer.
China sales were up 156 per cent year-on-year and contributed 53 per cent of quarterly gross revenue. International sales (excluding China) were up 489 per cent year-on-year and contributed 24 per cent of quarterly sales.
Significantly, the consumer stock achieved market share gains and sales growth of 35 per cent for its domestic infant formula products. It remains the fastest growing infant formula manufacturer in Coles, Woolworths and Chemist Warehouse.
Founder and CEO Kristy Carr was pleased Bubs delivered a turnaround to high growth during the quarter.
“Importantly, there continues to be strong consumer demand for Bubs quality nutritional products in all key markets with solid performance across our core business segments. Our turnaround growth strategy delivered gross revenue of $18.5 million, nearly double the prior year and up 45 per cent on the previous quarter,” she said.
“This transformation reflects the collaboration with our strategic partners to execute our new integrated channel growth strategy built around Bubs strong brand equity. We have accelerated channel confidence by both restructuring our value chain to deliver enhanced channel margins, and rebalancing channel inventory to meet stabilised demand.”
Bubs generated $490,000 in operating activities and spent $64,000 on property, plant and equipment.
At the end of the September quarter, Bubs had $28.3 million in cash which was a slight increase to the $27.9 million it started with.
Company shares were up 22.2 per cent to trade at 44 cents at 12:13 pm AEDT.