Bubs revenue soars on new Chinese network
The opening of Bubs’ corporate daigou channel has helped infant formula maker outstrip last year’s total revenue in just six months, including a 23-fold increase in sales to China.
In a quarterly trading update on Wednesday, Bubs flagged $21 million in gross revenue for the six months to December 31, already beating its $18.42 million revenue from FY18.
Bubs’ second-quarter gross revenue of $12.1 million was up nearly five-fold on the same period last year, and 35 per cent up on the first quarter of FY19, while sales more than doubled on the prior corresponding period.
The company is due to report its audited half-year results on February 28.
Founder and chief executive Kristy Carr credited the lift to its pursuit of China cross-border eCommerce sales and activation of the corporate daigou distribution channel.
“Sales into China are 23-fold up on the same period last year, demonstrating our route-to-market strategy is being successfully executed,” she said.
In June, the company raised $40 million in shares at 75 cents each in to support its Chinese push, while in the same month it secured a deal to sell its products on the nations biggest e-commerce platform: Alibaba.
In December, Bubs secured additional goat milk supply with NZ’s Central Dairy Goats Pty Limited, adding another six million litres annually.
Domestic sales growth is up nearly four-fold year-on-year and up 18 per cent on the previous quarter.
Bubs products and CapriLac powder account for 48 per cent and 38 per cent of the quarter’s revenue respectively, with fresh dairy products accounting for the remaining 14 per cent.
Shares in Bubs were trading at 43 cents before open of trade on Thursday, down from 72 cents a year ago.