Bubs share price up 4% on further US update

Bubs is rising following its sixth announcement in the space of a month…

Key points
  • Bubs shares are rising on Thursday morning
  • This follows the release of yet another update on its shipments to the US
  • Two more flights have been arranged for its infant formula but the overall order quantity remains the same

The Bubs Australia Ltd (ASX: BUB) share price is pushing higher on Thursday.

This follows the release of the infant formula company's sixth market sensitive announcement in less than a month.

At the time of writing, the Bubs share price is up 4% to 64.5 cents.

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face.

Image source: Getty Images

What did Bubs announce this time?

This morning Bubs advised that another shipment of its infant formula is on its way to the United States to help with shortages.

The US Department of Health and Human Services (HHS) has sourced two flights to transport 90,000 tins per plane of Bubs infant formula to Los Angeles and Philadelphia.

These tins have already been purchased by US retailers and will be distributed to stores within one to two weeks of arrival on US soil.

However, it is important to note, that there doesn't appear to be any change to the overall order size of 1.25 million tins. So, this announcement is largely unnecessary, and rather than letting the results speak for themselves, Bubs appears to be milking it for all it's worth.

Management commentary

Bubs founder and CEO, Kristy Carr, commented;

It was a pleasure to meet with the team at the Executive Office of the President in person to discuss Operation Fly Formula and Bubs Australia's long-term commitment to support American families. We wish to thank the US Government for its ongoing support under Operation Fly Formula, with the confirmation of the third and fourth air freight delivery of Bubs® Infant Formula to areas most in need.

It is immensely rewarding that only twenty-four days after the USA Food and Drug Administration (FDA) exercised its enforcement discretion for Bubs to import six infant formula products into the United States, we can now see products physically on the retail shelves for American parents, whilst moving at the speed of safety. By mid July we expect 361,299 cans of Bubs Infant Formula to have been made available to major retailers across 34 States. This reflects an incredibly concerted effort from Bubs, our logistics and retail partners, and the United States Government.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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