The Bubs Australia Ltd (ASX: BUB) share price is catching the eye on Monday.
In morning trade, the junior infant formula company's shares are up 8% to 13.5 cents.
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Why is the Bubs share price pushing higher?
Today's strong gain has been driven by the release of an update on the company's performance in the United States market.
According to the release, Bubs is experiencing strong growth and accelerating consumer demand in the United States despite recent stock shortages.
This saw the company achieve record weekly USA revenue of $770,000 in November.
Management notes that Bubs is the number one infant formula goat milk brand in the United States, with over 330,000 tins sold financial year to date by the end of November. This compares to 400,000 in FY 2023. It is now ranged in over 5,900 stores across the country.
In light of this, management believes that USA net revenue will be at least $48 million in FY 2024. This will be double what it achieved in the country in FY 2023.
And with the American Academy of Pediatrics (AAP) now officially expanding its infant formula recommendations to include goat milk-based products, management appears optimistic that its growth can continue.
Bubs CEO, Reg Weine, said:
The American Academy of Pediatrics (AAP) expanded their infant formula recommendations recently to include goat milk-based products for the first time which is a game changer. We are pleased to report that we have already extended our single manufacturing shift to meet the increasing demand and we will move to a full second shift at Deloraine in mid-January 2024.
Despite the supply chain interruptions and inventory shortages in the US over the past 6 weeks, the demand for our products and brands continues to grow. Bubs achieved record weekly USA sales in November 2023 of over $770k. Once we are back in a full stock position, we expect our growth rate will increase further.
The Bubs share price is down 55% over the last 12 months.
