- Bubs Australia has seen its best quarterly earnings in company’s history
- Strategic partnerships in Australia and China has resulted in the company’s substantial growth
- Bubs’ share price is up seven per cent, currently sitting at $1.44 per share
Infant formula producer Bubs Australia, has recorded its highest quarterly earnings in the company’s history.
Bubs’ Founder and CEO Kristy Carr said fourth quarter sales were higher than combined sales during 2018, raking in $18.46 million.
Yearly sales reached $51.3 million, an increase of 179 per cent from the previous year.
The impressive numbers continue, with quarter four sales up 56 per cent from the previous quarter, and up 108 per cent from quarter four last year.
Bubs reports it now has $23.3 million in its cash reserves and positive cashflow was obtained during the latest quarter.
“This demonstrates the validity of our continuing focus on our four-pillar growth strategy, combined with underlying investments in supply chain and capabilities, and key strategic channel partnerships, is delivering an aggressive growth trajectory and a platform for moving into profitable growth in the near term,” Kristy explained.
The company’s infant formula saw the largest increase in sales, up 341 per cent from the prior year. While Bubs’ adult dairy range represented 50 per cent of gross sales for the quarter.
“Our infant nutrition and adult dairy portfolios’ revenue split continues to be closely balanced,” Kristy said.
Having products featured in Coles, Woolworths, Big W, Amazon, Costco and Chemist Warehouse also led to the company’s strong growth.
A series of partnerships established during the 2019 financial year saw Bubs’ presence in China grow substantially.
Bubs entered a $31.4 million share placement with C2 Capital Partners, a private equity fund who fall under conglomerate giant Alibaba’s umbrella.
The partnership assisted Bubs branching into the Chinese market and led to the purchase of a Chinese accredited infant formula facility.
Bubs also formed a deal with Chinese childrens food manufacturer Beingmate, which will see Bubs’ products distributed to 30,000 stores in China.
Following the joint venture with Beingmate, the company’s products are featured in 275 Kidswant stores in China, one of the nations largest mother and baby stores.
The market has responded favourably to Bubs’ quarterly earnings, with the company’s share price up seven per cent, currently sitting at $1.44 per share.