Australian organic baby food producer Bubs says it is on track to break even this year, thanks to strong sales growth across all its major markets, especially in the US and China.
The company reported year-on-year net revenue growth of 52.6 per cent to $23.2 million in the third quarter, with a 48 per cent increase in sales in the US from $7.3 million to $10.8 million, aided by 17,000 unit sales in a single week on Amazon.
Sales in China rose by 185 per cent to $5.7 million in the quarter, following an expansion of distribution to over 1200 O2O stores across 23 provinces and 79 cities.
In Australia, Bubs’ net revenue grew 2 per cent to $4.6 million, while revenue from the rest of the world increased by 50 per cent to $2.1 million, thanks to especially strong growth in Vietnam and Japan.
The company saw a reduction in EBITDA loss from $6.7 million last year to $200,000 this year, and now projects breaking even for the year, aiming for $102 million in revenue and increasing its gross margin by over 40 per cent.
