The Bubs Australia Ltd (ASX: BUB) share price is set to finish today’s session strongly in the green.
Investors have bid shares in the goat milk infant formula company 7% higher.
By comparison, the broader S&P/ASX200 Index (ASX: XJO) has sunk more than 1.4% today.
So what’s been fuelling the Bubs share price?
What’s pushing the Bubs share price today?
Bubs has not released any price-sensitive news that could explain today’s bullish price action.
As a result, there are a few factors that could be pushing shares in the infant formula company higher.
As a result, sentiment towards the sector could be parlayed onto the Bubs share price.
Secondly, investors might have had a change in heart towards Bub’s recent news of expanding into the US.
Earlier this month the company announced plans to expand into the lucrative North American market.
Investors did not react to the news favourably, with the Bub share price sinking more than 9% on the day.
The company had flagged first shipment of products in its results presentation for FY21.
How did Bub’s perform in FY21?
Late last month, shares in Bubs took a tumble following a disappointing full-year report.
The infant formula company posted a huge loss for FY21, with a 24% decline in revenue of $46.8 million.
The dour result was driven by a 44% decline in Australian sales to $20.4 million and a 17.5% decline in China sales to $10.47 million.
Other highlights from the company’s full-year report included;
- Underlying EBITDA loss of $28.5 million
- Statutory loss after tax of $74.7 million
- Cash balance of $27.9 million
Part of the company’s loss for the full year was attributed to a $44.6 million non-cash impairment relating to the Nulac Foods cash generating unit.
Bubs noted that weaker sales, a $12.6 million inventory write down, and the sale of excess bulk powder attributed to a bloated operating loss.
Snapshot of the Bubs share price
Today has provided a brief reprieve for Bub’s shareholders.
Shares in the infant formula company have not had a great year, trading more than 39% lower since the start of 2021.
At the time of writing, the Bubs share price is poised to close today’s session more than 5% higher.
The company’s shares were up more than 11% earlier, having hit an intra-day high of 38 cents.