Bubs US sales growth skyrockets 500pc to become majority of revenue

Business News Australia01-31

Infant formula group Bubs Australia (ASX: BUB) added a second shift at its factory in Deloraine, Victoria this week to keep up with surging demand in the US market, where sales rose by 498 per cent ...

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a longer-term play aimed at consolidating Bubs' position in the market.\"USA market expansion remains our number one priority and despite the recent inventory shortages in the US, we grew our USA revenue by 20.8 per cent over Q1,\" says Weine.\"Sales of our Bubs goat formula continue to resonate with US consumers, and we continue to make meaningful progress on our US clinical trial.\"We have now commenced our second shift at our Deloraine manufacturing facility to meet the rapidly growing demand in the USA. This will double our daily production and will help mitigate the stock shortages we experienced at the end of the calendar year due to high customer demand.\"The company reports factory utilisation has now reached 60 per cent at the facility, which the group paid $35 million for in 2019.Meanwhile, gross revenue in Australia was down 4.5 per cent at $4.8 million, and gross revenue in China rose 4.5 per cent to $4.2 million.\"Our China reset is progressing well and we expect sales in H2 to exceed H1 and deliver mid-single digit revenue growth over FY23 for the full year,\" says Weine.\"Whilst our domestic ex-factory revenue was down 4 per cent on the prior corresponding period due to the timing of orders, our scan sales performance was very strong with Bubs scan sales growing 15.4 per cent versus the total market growth of 3.4 per cent for the quarter,\" he says, adding Bubs is now the fifth largest player in the infant milk formula (IMF) market.\"Bubs is on track to deliver its strategic plan and guidance for the full year and remains focused on continuing to responsibly manage capital to grow and maximise shareholder value.\"At the time of publication, BUB shares were up 9 per cent at 12c, although this is still down 40 per cent over the past six months.Get our daily business newsSign up to our free email news updates.First Name:Email:Spam VerificationEmail AddressPlease tick to verify that you are not a robot \nHelp us deliver quality journalism to you.As a free and independent news site providing daily updates\r\n                  during a period of unprecedented challenges for businesses everywherewe call on your supportSupport Us","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2407325566"}