Bubs Australia has more than doubled third-quarter revenue to $11.8 million after infant formula sales to China and domestic daigou trade made March its best ever month.
Bubs on Tuesday said it had generated $6.9 million in revenue in March, which represented nearly 60 per cent of revenue for the quarter.
Bubs, whose shares rose 18.5 per cent across two days ahead of the third-quarter trading update, said China sales rose nearly tenfold on the prior corresponding period and that company-wide sales of its goat milk infant formula soared fourfold to represent 41 per cent of quarterly revenue.
“Business momentum has remained strong and our overall strategic direction has delivered excellent volume growth in Bubs premium infant nutrition segments, with 302 per cent increase in infant formula sales year-on-year,” chief executive Kristy Carr said.
Carr said the long-time supply partnership with Bega’s Tatura Milk Industries is simplifying its production chain in making goat milk infant formula. She said the company expects to formalise its joint venture agreement with China’s Beingmate Baby and Child Food Co at an official signing ceremony next Monday in Melbourne.
Under the proposed joint venture, Beingmate will sell Bubs products at its eCommerce and retail distribution network of 30,000 mother and baby stores throughout China. Bubs products will also be sold in Chemist Warehouse’s 450 stores across Australia from June. Bubs shares were up 6.49 per cent at 1054 AEST, to $1.23, another all-time high.