Australian baby formula and nutrition company Bubs has told investors that it intends to push on with its growth in the US, despite facing economic headwinds.
The ASX-listed company said it expects its year-end revenue to fall between $105 million and $115 million. Its CEO, Joe Coote, said the company also plans to reach its 10,000th retail point-of-sale location in the US by the end of the year.
“We have taken a careful and disciplined approach to managing our supply chain in a more complex external environment,” Coote added. “We are seeing continued growth, supported by expansion in the USA, and have taken targeted actions to navigate evolving conditions.”
Coote acknowledged that Bubs has absorbed some short-term cost increases in the wake of rising air freight costs. However, he said demand remains high and expects to reach the 10,000 stockists mark by July this year.
“Outside of this impact, we continue to see demand for Bubs products, and our focus remains on converting that demand into sustainable growth by expanding distribution and continuing to invest in brand activation and other strategic initiatives that will strengthen the business over the long term,” Coote said.
“The United States remains our strongest growth market and a key part of our strategy.”
