China brings record revenue for Bubs
Written on the 1 August 2018 by David Simmons
All year long we've been hearing about how Bubs (ASX: BUB) has successfully cracked the Chinese market with its infant milk formula, and the company's full year results are set to reflect what they've been saying.
During FY18, Bubs recorded its highest quarterly sales revenue ever, reporting a 99 per cent year on year growth for the product.
Its growth during the fourth quarter can be attributed to a successful cross-border eCommerce strategy with China according to Bubs founder and managing director Kristy Carr.
"During the quarter, we saw a strong growth trend with material uplift in infant formula and overall sales to China delivering our highest quarterly revenues," says Carr.
"Our China route-to-market strategy advanced significantly with several new cross-border trading partnerships. Our long-term Manufacturing Agreement with Certification and Accreditation Administration of China approved Australian Deloraine Dairy means we are well positioned to progress our application for registration of our infant milk formula with the China Food and Drug Administration."
These strong results cap off an impressive quarter for the company which, in June, secured $40 million from professional and sophisticated investors.
Also during the quarter, gross sales were up 531 per cent to $8.89 million, and export sales to China grew 644 per cent to $1.9 million.
The company says domestic sales remain strong with a new range of Bubs infant formula and cereals launched in Woolworths, and Bubs infant formula sales increasing by 21.1 per cent in Coles.
The company is expected to release its annual report on or before 28 September 2018.
Shares in Bubs are up 0.69 per cent to $0.73 per share at 10.11am AEST.
Business News Australia
Author: David Simmons