Infant formula company, Bubs Australia, is confident it will be cash flow positive in FY25, with Q2 FY24 recording an 79.7 per cent jump in gross revenue on the prior corresponding period (pcp).
Bubs CEO and MD, Reg Weine, said momentum was building in the company, with the strong quarter driven by rapid growth in the US.
“We remain firmly on track to achieve our guidance for FY24. and expansion into the US market still its number one priority. USA market expansion remains our number one priority and despite the recent inventory shortages in the US, we grew our USA revenue by 20.8 over Q1,” Weine said.
Snapshot
- Q2 group gross revenue $25.7m, up 79.7% pcp (Q2 FY23:$14.3m);
- Q2 group net revenue of $20.2m, up 92.1% pcp (Q2 FY23: $10.5m);
- Q2 US gross revenue $13.7m, up 498% pcp;
- Q2 China gross revenue $4.2m, up 4.5% pcp:
- US now accounts for 53% of group gross revenue;
- completed $17.4m capital raise;
- on track to exceed FY24 net revenue forecast of $80m;
- Deloraine factory - 2nd production shift started 29 January, factory utilisation now at 60%;
The second shift at Bubs’ Deloraine manufacturing facility will help meet the growing US demand, doubling daily production and mitigating stock shortages.
Domestically, the company achieved its highest ever category share of the total infant milk formula market at 5.3 per cent, and is now the fifth largest player in the market.
It is the number one goat formula brand, with 52 per cent of the market.
Weine said the company’s China reset was “progressing well”.
“We expect sales in H2 to exceed H1 and deliver mid-single digit revenue growth over FY23 for the full year,” he said.
