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Bubs records strong growth, as infant formula demand increases

(Source: Bigstock)

Infant formula maker Bubs Australia has recorded strong growth in its second quarter.

Quarterly gross revenue was recorded at $19.9 million with sales up 8 per cent quarter on quarter and by 56 per cent year on year. The company said infant formula revenue across all markets was up 83 per cent over the prior corresponding period. 

Among domestic retailers, gross revenue of its branded products was up 9 per cent year on year and 17 per cent quarter on quarter. 

As for international revenue (excluding China), Bubs’ products recorded 66 per cent growth on the prior corresponding period with quarter-on-quarter sales up 141 per cent.

Bubs Infant Formula drove sales up 272 per cent compared to the prior corresponding period with demand higher than pre-pandemic levels. Higher growth momentum in the corporate daigou channel saw sales up by 196 per cent against a year earlier.

Bubs founder and CEO Kristy Carr said the strong performance highlighted a pattern of growth momentum across all key markets and product groups.

“Bubs Infant Formula remains our hero product line and lead margin driver, up 83 per cent on the prior year, accounting for nearly two-thirds of revenues.

“On the home front, sales revenue of branded products increased 17 per cent quarter on quarter. Despite the subdued market, Bubs Infant Formula grew in both absolute terms and in market share with scan sales growth of 31 per cent in Coles, Woolworths and Chemist Warehouse consolidating its strong market share position to remain the fastest-growing infant formula manufacturer,” she said.

As for the China facing business side, the company has responded to the impact of the pandemic by realigning their China sales channels to execute the ‘Bubs Daigou 2.0’ strategy which worked in its favour. 

“Working alongside our strategic channel partner, AZ Global, we focused on enhancing channel engagement and campaign activation, whilst maintaining stabilised pricing and balanced fresh inventory levels. This channel partnership has resulted in very strong daigou demand for both Bubs Goat and Organic Grass-fed infant formula products (nearly quadrupling revenues over the previous corresponding period), as well as CapriLac adult milk powder (nearly doubling revenue on the previous corresponding period).”

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