Bubs Australia soared 23% on Thursday after the infant formula and food manufacturer reported a strong quarter on quarter turnaround, despite continuing challenging conditions. Whilst the impact of COVID-19 continues to cause channel disruption and market conditions remain challenging, sales growth is returning across all product groups, channels and regions, with quarter-on-quarter gross revenue increasing 36%.
Bubs noted that its infant formula has enjoyed a material uplift in Australian retail sales quarter-on-quarter with sales data confirming it was the fastest growing infant formula manufacturer across Woolworths, Coles and Chemist Warehouse.
While sales are still below the prior comparable period due to the contraction of the Daigou channel, there has been a strong rebound in domestic sales which are up 31% quarter-on-quarter. Despite the Daigou contraction, total export sales revenue was also up 45% on the previous quarter, and up 55% on the prior year, validating Bub's global expansion strategy is taking hold.
Bubs Executive Chairman, Dennis Lin said: "While a degree of uncertainty exists considering the continuing COVID-19 disruption, we take the significant quarter-on-quarter turnaround in sales momentum as a positive indicator for the long term. As Australia's largest producer of goat dairy products built on our unique vertically integrated business model and deep understanding of the specialty goat dairy supply chain, we enjoy a portfolio of highly regarded products showcasing Australian provenance. We are well placed to take advantage of a continued domestic market recovery, in which Bubs Australia is now the fastest-growing manufacturer in the category. The Bubs brand clearly resonates strongly with Australian families.