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- Bubs Australia (BUB) tables a record gross revenue of $38.5 million for H1 FY22, a 73 per cent increase on the prior corresponding period (pcp)
- Group revenue was up 84 per cent on the pcp to $33.6 million while Corporate Daigou gross revenue was up 276 per cent over the pcp to a record high
- Bubs continued to roll out new products in the half with 16 new products launched across three product categories in eight markets
- As of December 31, Bubs had $30.6 million in cash reserves which the company credits to two quarters of positive cashflow
- Shares in Bubs are up 2.33 per cent on the market and are trading at 44 cents
Baby formula and food maker Bubs Australia (BUB) has tabled a record gross revenue of $38.5 million for H1 FY22, a 73 per cent increase on the prior corresponding period (pcp).
Group revenue was up 84 per cent on the pcp to $33.6 million while underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) profit totalled $1.2 million.
Bubs’ group gross margins increased to 38 per cent while the company’s infant formula group gross revenue doubled from the pcp.
Bubs is the fastest-growing infant formula manufacturer in the Australian retail market with a 31 per cent uplift in scan sales.
Corporate Daigou (exporting of products for customers in China) gross revenue was up 276 per cent over the pcp to a record high and now exceeds pre-COVID levels.
This was complemented by a strong growth trajectory in China cross-border e-commerce (CBEC) revenue which was up 53 per cent over the pcp.
“Bubs is pleased to report its first half year to realise an underlying EBITDA profit. This was a product of management’s uncompromising focus and ability to execute on strategic initiatives with precision, notwithstanding challenging macro-economic conditions,” Founder and CEO Kristy Carr commented.
“We see potential upside in Australia’s borders reopening with the return of Chinese students, although continuing challenging market conditions are expected to remain for some time.”
USA in-store penetration is underway with Bubs securing range in Southern California’s largest food retailer, Ralphs.
Bubs continued to roll out new products in the half with 16 new products launched across three product categories in eight markets.
As of December 31, Bubs had $30.6 million in cash reserves which the company credits to two-quarters of positive cashflow.
“In light of the progress made, management expects 2H22 to deliver modest Half on Half growth in revenue, and underlying EBITDA with revenue realisation from earlier new business development coming through in Q4 and after taking into account the seasonally quieter Q3,” Executive Chair Dennis Lin said.
“While our forward plans aren’t contingent on COVID dislocations resolving quickly, we continue to exercise caution as pandemic related effects and macro-economic uncertainties remain that could result in transitory variability.”
Shares in Bubs were up 2.33 per cent on the market and were trading at 44 cents at 12:50 pm AEDT.
