As the doors close on Bubs Australia’s board debacle, with the existing board surviving a spill motion led by founder Kristy Carr and ex chair Dennis Lin, the ongoing pain of falling sales in China returns to the limelight.
The company reported full year group gross revenue was down 29 per cent on last year, to $73.7 million. Its Q4 FY23 revenue was down 59 per cent on previous corresponding period (pcp) to $20 million, but up 27 per cent on Q3. Find joy where you can.
Snapshot
- Full year revenue: $73.7m, down 29%;
- Q4 revenue: $20m, down 59% pcp, up 27% on Q3;
- Q4 revenue for infant milk formula (IMF): down 52% pcp, up 49% on Q3; and
- Group operating expenses: up 110% pcp.
Bubs’ woes in China continue, with $13.6 million full year revenue just crossing the low-level mark of its forecast guidance for the market ($13.5-$13.8 million) and a sizeable distance from FY22’s $53.6 million result.
The company said the significant amount of inventory held in trade and ongoing legal dispute with affiliates of AZ Global, Alice Trading and Willis Trading, meant sales have been subdued. China Q4 revenue was $1.4 million, down 96 per cent on pcp and 53 per cent on Q3.
In a statement, Bubs said it was seeing modest growth and sell-through in CBEC for Caprilac and Bubs sales volumes stabilising.
“With new trade partners and distributors on board we expect to see our China sales and volumes build steadily in the coming year,” Bubs said.
Australian FY revenue was $15.2 million, up 19 per cent, helped by Big W and Baby Bunting becoming stockists.
Its US business was gaining momentum in all go-to-market channels and achieved its first $1 million month on Amazon in May. Full year revenue was up 95 per cent on last year at $23.8 million. Q4 revenue was up 45 per cent to $11.8 million pcp, and up 97 per cent on Q3.
