Bubs Australia CEO Kristy Carr says the company’s strong Q2 performance validates its ‘Bubs Daigou 2.0’ strategy while building on its Q1 Covid turnaround.
Carr said the strategy, delivered with channel partner AZ Global, was focused on enhancing channel engagement and campaign activation while stabilising pricing and fresh inventory levels.
It resulted in a “very strong Daigou demand” for Bubs Goat and Organic Grass-fed Infant Formula products, nearly quadrupling revenues over the previous corresponding period pcp, and CapriLac adult milk powder, which nearly doubled revenue on the pcp.
Snapshot
- Record quarterly gross revenue of $19.9m, up 56% pcp and up 8% QoQ;
- record 1H group gross revenue of $38.5m, up 73% pcp and up 57% HoH;
- Bubs Infant Formula gross revenu¹ up 83% across all markets pcp and up 13% QoQ;
- strong revenue growth was achieved across key business segments;
- gross revenue of branded products in domestic retailers was up 9% pcp and up 17% QoQ,
- China gross revenue was up 121% pcp and up 21% QoQ,
- international (ex-China) gross revenue for Bubs’ products was up 66% pcp and up 141% QoQ, - high growth momentum in the Corporate Daigou Channel, up 196% pcp and up 17% QoQ, driven by Bubs Infant Formula sales up 272% pcp - with demand now exceeding pre-pandemic levels;
- strong growth in China CBEC with Bubs sales up 48% pcp and CapriLac sales up 65% pcp;
- USA eCommerce sales now live on leading retail platforms; Walmart, Amazon and Thrive; and
- positive cashflow for 2nd consecutive quarter and robust balance sheet with $30.6 million in cash reserves as at 31 Dec 2021, versus $28.3 million in prior quarter (+$2.3m).
Bubs Infant formula remains the company’s hero product line and lead margin driver, accounting for nearly two thirds of revenue.
The company is the fastest infant formula manufacturer across Woolworths, Coles and Chemist Warehouse with a combined 31 per cent scan sales increase pcp and a record 3.9 per cent market share of the total infant formula category.
“On the home front, sales revenue of branded products increased 17 percent quarter-on-quarter. Despite the subdued market, Bubs Infant Formula grew in both absolute terms and in market share,” Carr said.
