Specialty Infant formula and children’s nutritional products maker Bubs Australia has reported first-half group revenue of $33.6 million with underlying EBITDA profits of $1.2 million.
Bub’s portfolio has increased 81 per cent compared to the previous corresponding period with the group’s gross margin increasing to 38 per cent.
In the global market, the recovery of the Daigou channel in China has provided a paramount turnaround in its first-half profits. Gross revenue increased 276 per cent compared to the prior period despite international border closures.
During the period, the company also began selling through the US’s two largest e-commerce retailers, Walmart and Amazon. The brand has scored an in-store contract with Southern California’s biggest food retailer, Ralphs – where it will be rolled out into 177 stores by March.
Bub’s CEO Kristy Carr notes that the brand’s financial turnaround is due to the strategic innovations made during this period and added: “The fact we have been able to return to a growth trajectory speaks to our corporate DNA and our ability to navigate ways forward in a volatile environment.”
“During the first half, as part of our strategy to widen points of engagement with our target consumers, we have successfully launched 16 new products across three product segments in eight markets,” she said.