Bubs Australia: Record quarterly sales as exports rise to China, Vietnam
Goat milk powder manufacturer Bubs Australia has recorded record quarterly sales at a time when coronavirus ravaged global markets. The company has boosted its presence in China and Vietnam.
GOAT milk powder manufacturer Bubs Australia has earned record quarterly revenue during the first three months of 2020 — a period when COVID-19 ravaged global markets and national economies.
Bubs’ gross revenue for the quarter was $19.7 million, a 36 per cent rise on the second quarter results and 67 per cent higher than the third quarter of 2018-19.
Gross revenue for the first three quarters of this financial year was $48.5 million and had now exceeded full-year revenue of $46.8 million for 2018-19.
Bubs manufactures both adult and infant formulations.
The company’s founder and chief executive officer Kristy Carr said the infant formula range performed strongly during the third quarter, with sales 137 per cent higher than the previous corresponding period.
“As a result, the company delivered positive operating cashflow of $2.3 million for the period, providing us with a strong cash balance of $36.4m at the end of the period and significant financial flexibility to take advantage of a dynamic and evolving market,” Ms Carr said
“Our vertical integration of the goat milk supply and product facilities has been a key strength during this period.
“As a designated essential service, we continue to uphold a solid supply chain with minimal disruption to our manufacturing operations.
“This has enabled us to meet increased domestic demand as well as commitments to our international strategic partners with heightened safety and operating practices.”
Bubs also revamped its online store during the quarter to help customers access goat milk products during the COVID-19 pandemic.
Australia retained the bulk of Bubs’ market, accounting for 64 per cent of total sales.
Sales in the Australian market during the third quarter were 36 per cent higher than the previous corresponding period.
Chinese sales rose 104 per cent and now account of 24 per cent of gross sales.
There remaining 12 per cent of gross sales were to various other countries but have risen 20 times that of the previous corresponding period.
Bubs said there had been significant growth in Vietnam.
“While fully satisfying domestic demand, export revenue has also increased as we ship product by sea container to our strategic partners, including Alibaba for online sales into China through its Centralised International Procurement initiative, and the Beingmate Joint Venture,” Ms Carr said.
“In addition to doubling direct sales into China, we have experienced growth across all channels and key partners.
“In particular, there has been strong demand from Vietnam during the quarter with frequent replenishment expected into April and beyond.”
Bubs’ share price on the Australian Security Echange rose 18 cents this morning to $1.05 before settling back to 94 cents, still seven cents higher than yestdersay’s close.
Peter Hemphill’s family holds shares in Bubs Australia.
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