The Bubs Australia Ltd (ASX: BUB) share price sunk 7.5% in trade today to $1.11 despite the baby formula maker releasing no specific news to the market.
Bubs, like its baby formula rivals the a2 Milk Company Australia Ltd (ASX: A2M) and Bellamy's Australia Ltd (ASX: BAL), is leveraged to sales in the unpredictable Chinese market and the steep price falls might be related to worries China's trade war with the U.S. is on the brink of a major escalation.
Bubs is a baby formula business with a twist, though, as it sells goat-milk-based formula only and recently signed a joint venture agreement with a Shanghai-based Chinese partner named Beingmate to attempt to lift distribution and a 'strategic partnership agreement" with Alibaba's Tmall.
For the quarter ending March 31, 201,9 Bubs doubled its revenue to $11.13 million, with China sales surging to represent 20% of total quarterly revenue. Despite today's falls, the Bubs share price is still up around 130% over just the past year.
