Bubs Australia Limited (ASX:BUB) Reports 23% Revenue Growth and Returns to Profit
Financial Performance
Bubs Australia Limited reported a 23% increase in revenue to $48.5 million for the half-year ended December 2024, up from $39.4 million in the previous corresponding period. The company achieved a profit after tax of $3.55 million, a 146% improvement from a loss of $7.67 million the previous year.
Operational Achievements
The growth was driven by strong sales in the USA, China, and Rest of World markets. This includes revenue from the sale of Bubs’ infant formula of $41.8 million, an increase of 41% compared to 1HY24 ($29.6 million), which contributed 86% to the Group’s revenue. Bubs completed the rollout of new product variants in the US, aligning with regulatory requirements and market norms. The company anticipates FDA regulatory approval for permanent access to the US market in October this year.
Segment Performance
In the USA, revenue grew by 28% to $23.2 million, representing 48% of the Group’s total revenue. Bubs China saw a 45% increase in revenue to $10.2 million, while Rest of World markets grew 85% to $4.6 million. Australia’s revenue reached $10.5 million, maintaining a dominant 55% market share in the goat infant milk formula category.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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