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- Bubs Australia (BUB) has announced its full-year results, with gross revenue increasing by 32 per cent to $61.7 million
- The infant formula, goats milk and vitamins company was fuelled by strong demand for its formula products in Australia and China
- Despite the increase in revenue, Bubs still ended FY20 with a net loss of $7.8 million
- That’s a big reduction on FY19’s loss though, which totalled $35.5 million
- At the end of the 2020 financial year, Bubs had around $26 million worth of cash in the bank
- The company also placed its shares in back-to-back trading halts as it gears up to announce a capital raise
- Shares in BUB last traded for 91.5 cents per share on August 28
Infant formula outfit Bubs Australia (BUB) has increased its revenue over FY20, but still ended the year with a net loss of $7.8 million.
Bubs’ specialises in infant formula, baby food, vitamins and goat milk and spent the last financial year focused on expanding its overseas and domestic distribution.
FY20 results
Amid the release of the full-year results, the company said its infant formula was a star performer for FY20, with sales revenue increasing 58 per cent.
Formula revenue totalled $29.8 million at the end of June 30, up from $18.9 million in FY19. While export sales to China rose 32 per cent to $12.7 million, while domestically sales revenue increased nine per cent to $36.5 million.
The increase in formula sales across Australia and China helped gross revenue grow by 32 per cent over FY20 to total $61.7 million, up from $46.7 million in the previous period.
Despite the increases in revenue, Bubs still ended the 2020 financial year with a net loss of $7.8 million. However, that’s a big improvement on the previous year’s results of a $35.5 million net loss, a 78 per cent reduction.
The company ended FY20 with just over $26 million worth of cash in the bank, after burning through $21.9 million in operating activities.
Capital raise
Along with the full-year financial results, Bubs also announced it was gearing up for a capital raise.
The company’s shares were locked up in back-to-back trading halts which will last until Friday, September 4, to give it time to finalise the details of the equity raise.
It’s not known how much Bubs plans to raise, what form the capital raise will take, nor what the money will be spent on. It’s expected these details will be released later this week when an announcement is made.
Due to the trading halts, it’s hard to analyse how shareholders reacted to Bubs’ FY20 results.
Shares in the company last traded for 91.5 cents each on August 28.
