November 2021 might be a good month to think about some potentially exciting ASX growth shares.
Businesses that are growing quickly might be able to give shareholders an opportunity to achieve good returns.
Companies that are launching more products or expanding geographically give themselves a bigger addressable market to target.
With that in mind, here are two to think about:
Bubs Australia Ltd (ASX: BUB)
Bubs is a leading goat milk infant formula business. It also sells adult goat milk products, infant food and cow milk infant formula. Most recently, Bubs launched a range of cow milk powder products for the whole family.
The business is currently experiencing a turnaround after some difficulties relating to demand for its infant formula.
The ASX growth share's FY22 first quarter for the three months to 30 September 2021 showed several statistics of high growth. Total gross revenue of $18.5 million was up 96% year on year and 45% quarter on quarter.
Bubs infant formula gross revenue increased 124% across all markets year on year. It was up 64% year on year. Infant formula is the high margin part of the business.
Adult goat milk powder total gross revenue increased 100% year on year and 61% quarter on quarter.
Looking at some of the more specific growth areas, in Australian grocery and pharmacy retailers, Bubs infant formula went up 35% year on year. China gross revenue grew 156% (making up 53% of quarterly revenue), with Bubs infant formula daigou sales increasing 648% year on year and 265% quarter on quarter.
International (excluding China) gross revenue went up 489%, contributing 24% of quarterly sales. Currently this predominately relates to south east Asia, but it has established a business in the USA too.
City Chic Collective Ltd (ASX: CCX)
City Chic is fast becoming one of the world's biggest specialty retailers of clothing, footwear and accessories for plus-size women.
The City Chic share price has risen by 144% over the last year. But several brokers still rate it as a buy, including Citi and Morgan Stanley, which have price targets on the ASX growth share of $7.20 and $6.65 respectively.
Those brokers think that City Chic has a good growth opportunity in the US, particularly as one of its competitors (called Torrid) is doing well there too.
Another positive from Citi is that City Chic is doing well at turning itself into an international force with a high level of online sales.
The company has acquired a few good businesses in recent times, including Evans in the UK, Avenue in the US and Navabi in Europe. City Chic's global customer base grew 61% year on year to 1.07 million and the website traffic grew 68% to 58.1 million.
In terms of the digital sales, online revenue grew 49.3% and made up 73% of total sales. City Chic's FY21 sales revenue increased 32.9% to $258.5 million whilst underlying profit rose 80.6% to $24.9 million.
Morgan Stanley thinks that the City Chic share price is valued at 34x FY23's estimated earnings.
