The Bubs Australia Ltd (ASX: BUB) share price rose another 3.9% as investors got more excited about the company’s prospects.
Bubs was founded in 2006 by Kristy Carr and was listed on the ASX in January 2017. Its infant formula is based on goat milk and it also sells organic baby food. Bubs recently acquired NuLac Foods, Australia’s largest producer of goat milk products, it also guarantees exclusive supply of local goat milk from Australia’s largest herd of milking goats.
Why The Bubs Share Price Rose Today
Bubs released its March 2019 update to investors which showed that the third quarter gross revenue grew to $11.83 million, which was a 103% increase compared to last year. March 2019 gross revenue alone was $6.91 million. The company’s year to date gross revenue is $32.87 million.
The gross sales of Bubs’ goat milk infant formula increased by 302% compared to the prior corresponding period, representing 41% of the March 2019 quarter revenue.
Bubs organic baby food gross sales increased by 22% compared to last year, which represented 6% of the third quarter revenue. CapriLac goat milk powder revenue increased by 119% compared to last year and constitutes 40% of March 2019’s quarter revenue.
Overall, domestic sales were up 71% compared to the March 2018 quarter.
The China and daigou sale channels were a pleasing contributor to the business’ result. China sales were up 884% compared to last year and represented 20% of the March 2019 quarter revenue.
Emerging market exports saw growth of 26%, but only represented 1% of the quarter’s revenue.
Commenting on the business progress during the quarter, Bubs Australia Founder and CEO Kristy Carr said:
“Continued third quarter sales momentum provided the foundation in the fourth quarter for C2 Capital partners to become a cornerstone investor in Bubs; the acquisition of China-approved canning facility, Australia Deloraine Dairy; and the equity-linked alliance with Chemist Warehouse.“
As Ms Carr alluded to, Bubs Australia seems to have all of the building blocks in place to replicate the growth story that A2 Milk Company Ltd (ASX: A2M) experienced, however it’s still very early stages not guaranteed to be as successful, but I think it’s one to watch for the coming years.
The two ASX growth shares in the free report below are closer to achieving their market domination overseas.
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