Bubs Australia’s net loss narrowed amid higher revenue in the fiscal first half, thanks to strong growth in Australia and the US.
The infant milk formula brand’s net loss improved to $7.7 million as revenue grew 25.2 per cent to $39.4 million.
The company saw sales increase 36.8 per cent to $11.7 million in Australia and surge 84.6 per cent to $18.2 million in the US.
Sales fell 30.3 per cent to $7.1 million in China and declined 15.5 per cent to $2.5 million in other international markets.
“USA market expansion remains our number one priority and our capital raising in November 2023 has enabled us to commence our second production shift at our Deloraine manufacturing facility and doubled our daily production volumes,” said Bubs CEO and MD Reg Weine.
“Our China reset is well underway and we expect sales in the second half to exceed the first half, delivering mid-single digit revenue growth over FY23 for the full year. While the inventory overhang in China under Bubs’ previous exclusive distributor continues to be heavily discounted in all channels, this inventory will be cleared by the end of FY24.”
