Bubs Australia: Goat milk infant formula sales lift, China back as big buyer
Goat infant formula manufacturer Bubs Australia has reported a rise in revenue. See how the sharemarket reacted.
A HEALTHY 36 per cent jump in December quarter sales has pushed the share price of goat milk infant formula manufacturer Bubs Australia up 23 per cent.
Bubs founder and chief executive officer Kristy Carr said gross revenue for the December quarter was $12.8 million, 36 per cent per higher than the September quarter.
”While this is still some 12 per cent below the prior comparable period due to the contraction of the daigou channel, we are particularly pleased by the strong rebound in domestic sales, which are up 31 per cent quarter on quarter,” Ms Carr said.
“Total export sales revenue was also up 45 per cent on the previous quarter and up 55 per cent on the prior year, validating our global expansion strategy is taking hold.”
Bubs sales revenue for the six months to December 31 was $22.7 million, 12.4 per cent lower than the $26 million recorded for the first half of 2019-20.
Last year, its total revenue was $55 million.
Ms Carr said there were strong cross border sales into China.
“We are also encouraged by the turnaround progress in the corporate daigou channel, with outbound domestic sales moving through the reseller channel more than doubling, up 122 per cent quarter on quarter, helped by our active support for the channel, which has great strategic importance in building brand awareness and new customer acquisitions in China,” she said.
“While we remain confident in the long-term viability of the channel, the challenging COVID-19 environment and the near absence of Chinese visitors and students in Australia is likely to continue to constrain the domestic daigou channel growth in the short term.”
Investors were buoyed by Bubs’s results, pushing the share price up 14 cents to close at 74.5 per cent.
In a day, where the Australian Securities Exchange’s All Ordinaries Index plummeted 2 per cent, the Bubs quarterly sales results was a rare bit of good news.
Peter Hemphill’s family holds shares in Bubs Australia.
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