The Bubs Australia Ltd (ASX: BUB) share price spiked this morning on the release of its quarterly results before market-open.
The Bubs share price closed last week at $1.34 but opened this morning at $1.51 before going up to $1.53. The share price has since settled at $1.40 at the time of writing, up 4.46%.
Here are some of the highlights from the quarter ending June 30, 2019:
- Strongest quarter in the company's history, with Q4 sales exceeding the full year sales for 2018
- Q4 revenue is up quarter-on-quarter 56% and 108% compared with Q4 2018
- Revenue for FY19 up 179% from FY18
- Infant formula sales have increased 341% from the prior corresponding quarter period (pcp) and totalled 47% of gross sales for the quarter
- Organic baby food sales increased by 13% (from pcp)
- Adult dairy products sales increased by 47% (from pcp)
- Total Bubs Products sales increased by 236% (from pcp)
- Cash reserves are now at $23.3 million (as at June 30, 2019)
Turning to regional performance:
- Australian sales were up 127% (from pcp) and represented 85% of gross sales
- Sales from China were up 13% and came in at 12% of gross sales
- Other international markets sales increased by 909%, representing 3% of gross sales for the quarter
Bubs CEO Kristy Carr stated that the results "demonstrate the validity of our continuing focus on our four-pillar growth strategy, combined with underlying investments in supply chain and capabilities, and key strategic channel partnerships, is delivering an aggressive growth trajectory and a platform for moving into profitable growth in the near term… During the quarter, we saw over 56 percent uplift in group sales over the previous quarter, and more than doubles sales revenue compared to the same period last year. The core driver was Bubs' goat milk infant formula, which increased 341 percent year-on-year."
Bubs is the leading producer of goat dairy products in Australia using Australian goat milk. It offers a range of goat milk-based products such as infant formula, cereals, and snacks.
