Bubs Australia delivered strong revenue growth in FY26, but profitability was hit amid rising costs and mixed results across its regional markets.
For the 12 months ended June 30, group revenue was up 9.2 per cent to $111.9 million, while underlying EBITDA rose 338 per cent to $5.3 million. Management said the growth was driven by a 24 per cent increase in its US revenue following expanded distribution to over 10,000 stores across the market.
Yet, profitability softened, with gross profit down 9.4 per cent to $44.5 million and gross margin narrowing to 39.8 per cent from 47.8 per cent in FY25 due to increased airfreight, regulatory and tariff-related costs. The group’s reported EBITDA loss was $1.8 million, down significantly from $5.2 million in the previous year.
In addition, they noted that US growth was partly offset by weaker performance in Australia and the rest of the world. Competitor pressures, supply constraints and brand repositioning challenges led to a 7 per cent revenue decline in Australia, while sales in Mainland China remained flat.
CEO Joe Coote said FY26 marked important progress against the company’s growth strategy, citing various strategic pillars that had gained traction and translated into tangible outcomes.
“During the year we rebuilt inventory levels, expanded distribution channels, launched adjacent products, increased brand investment and strengthened our leadership team to support future growth,” he said.
“This progress was achieved despite a challenging operating environment, with changing tariff policies, geopolitical disruption and evolving regulatory requirements increasing supply chain costs and affecting product availability, particularly in the second half.”
For FY27, Bubs Australia expects improved momentum to flow through the first half as the business adapts to the new regulatory and tariff environment. Positive sales growth is anticipated, with gross margin set to rebound while regional performance remains mixed.
“Looking ahead, we are focused on building upon our disciplined execution capability and the strategic progress achieved in FY26,” said Coote.
“Our FDA approval pathway remains on track, and we are confident in achieving authorisation, supporting our long-term growth ambitions in the US.”
