Bubs Australia has formed an agreement with U.S supermarket giant Walmart to purchase a shipment of formula products as part of Operation Fly Formula, and has upgraded market guidance for the 2022 financial year.
Bubs founder and CEO Kristy Carr said the company was ‘tremendously’ excited to forge a relationship with Walmart, where products are set to be distributed to about 800 Walmart stores in the U.S.
“This store distribution builds on our existing Walmart.com sales channel; more broadly, the addition of Walmart will increase our bricks and mortar exposure in the United States over the coming days and weeks to around 4,800 stores across 35 States,” said Carr.
Under the agreement, Walmart will purchase the entire shipment comprising around 85,000 tins of Bubs Infant Formula, filling a Boeing 747-400F cargo aircraft chartered by the U.S. Government under the ‘Fourth Operation Fly Formula Mission.’
The shipment includes Bubs Supreme A2 Beta-Casein Protein, Bubs Organic Grass Fed, and Bubs Easy-digest Goat Milk Infant Formula and Follow-On Formula portfolio and will supplement Aussie Bubs Toddler Formula products already sold online with Walmart.
Carr also thanked the U.S. Government for their ongoing support and guidance.
Following the news of further expansion in the U.S, Bubs has also updated their financial year 2022 (FY22) market guidance.
Bubs now expects gross revenue to be over $100 million for FY22, subject to scheduled operations occurring without disruption, with at least 100 per cent increase on the $1.2 million underlying EBITDA.
On 23 February, Bubs reported $38.5 million gross revenue (+73 per cent pcp) and $1.2 million underlying EBITDA at 1H FY22 Results.
At that time management provided guidance that the Company expected to deliver modest half on half growth in revenue and underlying EBITDA (excluding non-cash equity compensation expenses, i.e. share based payments).
On release of the Q3 FY22 Quarterly Activities report and the 4C Cashflow Statement on 26 April 2022, the company reiterated this guidance.