The infant formula and goat milk product maker delivered underlying earnings before interest,tax,depreciation,and amortisation of $4.8 million for the 2022 financial year,after a $29.7 million loss the previous year. Group revenue also more than doubled (127 per cent) to $89.3 million.
Revenue from China now makes up more than half (55 per cent) of total group revenue,up from 47 per cent in 2021. Revenue from international markets,including the US,Middle East and Asia (excluding China) also tripled,making up 28 per cent of the total pie (compared with 21 per cent in 2021).
Australian revenue growth was also solid,lifting 17 per cent. The company’s overall Australian market share now stands at 4.7 per cent,making it the nation’s fastest-growing infant formula manufacturer,according to IRI scan data.
Loading
However,Bubs’ results appear to have undershot shareholders’ expectations,with the share price down nearly 5 per cent at the close of Tuesday’s trading session.
Carr said the 2023 financial year would centre on “tight and focused execution” of China and the US as “key growth engines”,along with efforts to further develop its infant formula portfolio.
“The key focus[will be] to get the US market to be somewhat similar in terms of revenue margin contribution to China as a key export market,” she said.