Bubs Australia‘s gross revenue declined slightly in the fiscal first quarter amid lower sales in the US and Australia.
The goat milk formula producer’s gross revenue slid 0.4 per cent to $24.2 million despite China sales increasing 15 per cent to $4.3 million.
US gross revenue fell 3 per cent to $11.3 million, while Australia dropped 19 per cent to $6.1 million.
Revenue from the rest of the world, however, surged 86 per cent to $2.4 million.
“Pleasingly, China has experienced strong growth in Q1 driven by Bubs’ O2O sales strategy, with 200 new O2O stores added in the quarter bringing the total to over 500 O2O stores selling Bubs’ products,” said Reg Weine, Bubs president and CEO.
“We are currently preparing for Singles’ Day next month, which is a hallmark of the Chinese shopping calendar and the largest e-commerce promotion event in China.”
Net revenue during the quarter decreased 0.3 per cent to $19.7 million while gross profit margin improved to 43 per cent.
Meanwhile, October gross revenue surged 121 per cent to $11.8 million. The company said it is on track to achieve its guidance of $102 million in net revenue for the full fiscal year.
