Baby formula and food group Bubs Australia has posted a 29 per cent revenue increase of $102.5 million for this financial year, up from $79.7 million during the same period last year.
The news came as the company announced Joe Coote would take over as CEO from from Reg Weine, effective immediately.
Bubs’ gross profit margin was down 1.4 per cent from 48.6 per cent to 47.2 per cent year-on-year.
The company expects a full-year EBITDA of between $5.5 million and $6 million, compared with a loss of $19.8 million the previous year.
The improved EBITDA was a reflection of improved trading and a $3.6 million influx from a settlement from Alice & Willis in its fourth quarter.
“With our continued revenue growth and our focus on working capital discipline, cost-out initiatives, and a reduction in one-off expenses, we achieved positive operating cash flow, for the third consecutive quarter, of $5.45 million and were cash flow positive for the full year,” said CFO Naomi Verloop.
“We increased gross margins from 30 per cent in FY23 to 47.2 per cent in FY25.”
In the US, its best-performing market, the company reported 52 per cent growth, year-on-year, with $53 million in revenue by capitalising on the growing premium IMF segment.
Its performance in China yielded a 22 per cent growth in net revenue, by strong CBEC sales of Goat IMF and Supreme IMF and Bubs’ successful expansion into the O2O channel, with its products now sold across 1276 stores.
In Australia, the company’s net revenue grew 8 per cent year-on-year, and the company saw a 44 per cent increase in net revenue in Vietnam and Japan.
New CEO
With over 20 years of leadership experience in the FMCG sector, incoming CEO Joe Coote was most recently CEO of Darigold in the US, and had spent 12 years at Fonterra in various senior leadership roles, including that of president, across the US, Asia and ANZ.
“Joe’s strong financial acumen and leadership experience across the FMCG, dairy and infant nutrition sectors align directly with Bubs’ strategic priorities,” said Bubs chair Katrina Rathie.
“His proven track record in driving operational excellence and leading large-scale transformations across international markets will be instrumental in expanding our premium clean-label goat and grass-fed dairy product portfolio across key export destinations, including the US, China and other Asian markets.”
“After 15 years abroad building global brands, it’s a privilege to return home and channel my experience into leading an Australian brand that’s redefining premium infant nutrition,” said Coote.
“I’m excited to lead the Bubs’ team to build a world-class infant nutrition brand that delivers exceptional outcomes for our shareholders and families the world over”.
