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Bubs achieves record US revenue despite supply shortages

(Source: bubsaustralia/Facebook)

Baby formula manufacturer Bubs has reported strong sales growth and accelerated consumer demand in the US despite recent supply shortages.

The company achieved a record weekly revenue of more than $770,000 in November and is forecasting full-year FY24 net revenue of at least $48 million, reflecting a 100-per-cent increase this fiscal year. 

Bubs reported sales of its goat milk infant formula of more than 330,000 tins by the end of November, compared to 400,000 for the entire last financial year. The product is available in more than 5900 stores across the US and has gained further recognition, with the American Academy of Pediatrics (AAP) expanding its infant formula recommendations to include goat milk-based products. 

Bubs CEO and MD Reg Weine said the AAP’s inclusion of goat milk in its recommendations for the first time is a game changer for the company. 

“We are pleased to report that we have already extended our single manufacturing shift to meet the increasing demand, and we will move to a full second shift at Deloraine in mid-January,” Weine continued. 

“Despite the supply chain interruptions and inventory shortages in the US over the past six weeks, the demand for our products and brands continues to grow.”

As of November, Bubs held $30.1 million in cash reserves, with an additional $9.8 million of unused headroom on its bank facilities.

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