Goat’s milk infant formula brand Bubs Australia’s revenue surged during the second quarter of the current fiscal year amid continued growth in the US.
The company’s gross revenue surged 79.7 per cent year on year to $25.7 million while net revenue soared 92.1 per cent to $20.2 million in the three months ended December 31.
Its US segment, which represents 53 per cent of the group’s gross revenue, saw revenue jump 498 per cent to $13.7 million.
The US market remains the company’s long-term strategic priority. The company noted that a second production shift of its Deloraine factory has already started, and is expected to service the strong demand in the American market.
The second daily production shift is expected to double the output from the current 12,500 tin per day capacity.
“This will double our daily production and will help mitigate the stock shortages we experienced at the end of the calendar year due to high customer demand,” said Reg Weine, Bubs CEO and MD.
The China segment also displayed growth with its gross revenue inching 4.5 per cent higher to $4.2 million.
Meanwhile, gross revenue declined 4.0 per cent to $4.8 million in Australia and fell 13.1 per cent to $1.2 million in the rest of the world.
For FY24, Bubs said it is on track to exceed its $80 million net revenue forecast.
