Baby formula and food manufacturer Bubs Australia has seen significant increases in its revenue for the current financial year, driven by its US business.
The group’s net revenue was up 29 per cent to $102.5 million, with its underlying EBITDA reported at $600,000, compared to a loss of $20.3 million in the previous year.
“We continue to build strong momentum in the USA as well as our other core markets,” said CEO Joe Coote.
“We achieved strong growth in our two key strategic export markets, with US revenue up 52 per cent and China revenue up 22 per cent on FY24.
“We also grew infant formula revenue in our home and rest of world markets, including Japan and Vietnam,” said Coote.
Bubs’ gross profit increased 27 per cent, and its gross profit margin dropped 1 per cent to 48 per cent.
In the US, Bubs’ best-performing market, the company delivered revenue of $53.1 million, a 52 per cent increase year-over-year, by growing its premium and goat IMF segments.
The company reported a revenue of $19.8 million in Australia, down from $21.6 million during the same period last year.
In China, Bubs’ revenue grew 22 per cent to $21.1 million, year-on-year, driven by strong cross-border-commerce sales of its Adult Goat and Supreme IMF, along with the brand’s expansion into the online-to-offline channel, with Bubs now stocked in 1315 stores.
Bubs also saw a significant net revenue increase of $8.5 million, up from $5.9 million year-on-year, in the rest of the world markets, driven by strong performance in Japan and Vietnam.
