Bubs Australia Ltd (ASX: BUB) shares are catching the eye on Wednesday morning.
In early trade, the ASX All Ords infant formula company's shares have jumped 18% off their 52-week low to 13 cents.
Why is this ASX All Ords share jumping?
The catalyst for this jump has been the release of the company's quarterly update this morning.
According to the release, Bubs recorded a 79.7% increase in gross revenue to $25.7 million for the three months ended 31 December.
This was driven largely by Bubs Infant Formula, which reported gross revenue of $18.8 million for the period. This is up 97.8% on the prior corresponding period.
The ASX All Ords share's United States business was the star performer. It reported a 498% increase in gross revenue to $13.7 million. This means the business now represents 53% of total gross revenue.
Revenue in China grew by a modest 4.5% to $4.2 million and Australia gross revenue fell 4% to $4.8 million. The company's Rest of World business posted a disappointing 13.1% decline in gross revenue to $1.2 million.
Overall, management believes this leaves it well-positioned to achieve its guidance in FY 2024.
Bubs CEO and managing director, Reg Weine, commented:
Momentum in our business continues to build and Q2 was another very strong quarter with gross revenue up 79.7% on the prior corresponding period driven by our rapid growth in the US. Bubs remain firmly on track to achieve our guidance for FY24. USA market expansion remains our number one priority and despite the recent inventory shortages in the US, we grew our USA revenue by 20.8% over Q1.
Despite its sales growth, Bubs continues to burn through cash. Management advised that operating cash outflow for the quarter increased to $8 million. This was primarily due to the inventory build and increase in safety stock to service the growth in demand in the USA.
The ASX All Ords share ended the period with a cash and available bank facilities totalling $37.2 million.
