‘Significantly accelerated’: Bubs Australia upgrades guidance
By Jessica Yun
Bubs Australia has upgraded its revenue forecasts for financial year 2022, with a string of deals in the US and strong performance in China delivering an unexpected windfall for the company.
The ASX-listed infant formula maker said on Friday it expects its full year gross revenue to land at over $100 million. It also forecast an “at least 100 per cent increase” on the first half of FY22 underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.2 million.
Bubs Australia shares jumped over 3 per cent on the news, opening the trading day at 62 cents.
Bubs Australia chief executive and founder Kristy Carr.Credit:Chris Hopkins
“It has been an extraordinary journey for Bubs to have had over 12 months of in-market experience to provide the first response to USA’s infant formula shortage, which is likely to change the industry landscape in the USA,” said CEO Kristy Carr.
“This has significantly accelerated our entry to one of the largest infant formula markets in the world.”
Carr added that “strong momentum in China” would see fourth quarter turnover “higher than originally anticipated”.
“Due to a strong momentum in China and the unanticipated volume of sales in the USA, complemented by
Bubs’ demonstrated agility and speed to respond to the call for action with first mover advantage, Fourth
Quarter turnover is likely to be higher than originally anticipated,” she said.
Bubs Australia was the first international company to respond when the US created a fast-tracked process for global manufacturers to assist with their domestic baby formula shortage.
Under US President Joe Biden’s fourth ‘Operation Fly Formula’, Bubs Australia has sent 1.25 million tins to the US which will be sold on 4000 supermarket shelves through US retailer networks Walmart, Kroger Co and Alberstons.
The deal, which analysts have predicted will deliver between $20-30 million in sales, was brokered through federal treasurer Joe Hockey’s advisory firm Bondi Partners, which helps Australian businesses break into the US market.
Biden personally thanked Carr in a recent roundtable with senior White House officials and other global baby formula makers.
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