Shares in baby formula business Bubs Australia Ltd (ASX: BUB) are up 8.4 per cent to 46 cents today and 50 per cent since July 28 when it revealed some decent sales growth for the quarter ending June 30 2017.
For the period the group posted revenue of $1.41 million, which is up 19 per cent on the prior quarter and 35 per cent on the prior corresponding quarter.
In Australia its infant formula brand is reportedly flying off the shelves and it now has distribution agreements with the likes of Big W, Chemist Warehouse, Costco and Wesfarmers Ltd (ASX: WES) owned Coles.
Like its baby formula rivals Bellamy's Australia Ltd (ASX: BAL) and the a2 Milk Company Ltd (ASX: A2M), Bubs is also aiming to cash in on its organic status and Australian provenance to sell its white gold in China. Its strategy is centred around Chinese import and distribution partners, alongside promoting itself on Chinese e-commerce platforms and popular social networks.
For the quarter ending June 30 2017 it narrowed its operating cash loss to just $347,000 and has cash on hand of $5.3 million. As a result of the improving financials and rocketing share price it now has a market value greater than $70 million.
