Bubs Australia’s second consecutive quarter of positive operating cash flow might seem insignificant ($0.5 million) in isolation, but when compared to the prior corresponding period (pcp) of almost $11 million outflow, it has given the company cause to be upbeat.
Q3 Snapshot
- Net revenue: $23.2m up 52.6% pcp;
- Gross profit margin: 43.7%, down from 44.8% pcp;
- Earnings before interest, tax, depreciation, and amortisation (EBITDA): ($0.2m), from ($6.7m) pcp; and
- Cash: $17.4m in total cash and equivalents, $5m in undrawn debt facilities.
Bubs CEO and managing director, Reg Weine, said the company was continuing to make progress against its strategic pillars.
“Pleasingly, our focus on growth in multiple markets, working capital discipline, cost-out initiatives, and a reduction in one-off expenses, has resulted in Bubs achieving positive operating cash flow for the second consecutive quarter of $0.5m in Q3 FY25,” Weine said.
Regional Highlights
- USA quarterly net revenue: $10.8m, up 48% on pcp (Q3 FY24: $7.3m);
- China quarterly net revenue: $5.7m, up 185% on pcp (Q3 FY24: $2.0m);
- Australia quarterly net revenue: $4.6m, up 2% on pcp (Q3 FY24: $4.5m); and
- ROW quarterly net revenue: $2.1m, up 50% on pcp (Q3 FY24: $1.4m).
Weine said the company is following the FDA’s guidelines and make meaningful progress on its USA clinical trial, with Bubs last patient completing the Growth Monitoring Study in April 2025. Bubs intends to provide its Growth Monitoring Study submission to the FDA in late June 2025 with the FDA approval decision expected in October 2025.
“We remain firmly on track to achieve our full year FY25 guidance of $102m revenue, gross margin over 40 per cent and EBITDA breakeven,” he said.
The sustained demand across all its key markets meant its Deloraine manufacturing facility was at 87 per cent capacity.
“We are comfortably meeting the global demand for Bubs’ products with our current two shift operation, and we can easily transition to a third shift if required,” Weine said.
