Huge sales growth in China underpinned a record set of numbers for Australian infant formula maker Bubs, including its first full-year profit.
Gross sales increased 123% for the full year to $104.2 million, with sales in China increasing 166%. Sales in Australia increased by 17% and in other markets – Asia, Middle East, Africa and the United States – by 202%.
The company’s flagship brand, Bubs Infant Formula, was the main driver of earnings, with sales up 177% and accounting for 60% of overall sales.
Gross margin improved to 32%, paving the way for underlying EBITDA profit of $4.8 million.
Founder and CEO Kristy Carr said the company also achieved a record domestic market share of 4.7% thanks to digitized sales growth of 38.6%.
“We saw strong momentum across our China business with a redesigned and reborn enterprise daigou omnichannel model and in the last quarter we accelerated our access to the US with our early acceptance into the Biden-Harris administration’s Operation Fly Formula initiative to help American families during the infant formula shortage crisis.
The company also hailed the success of its Bubs Supreme A2 beta-casein protein formula launched in the last quarter of the fiscal year, which already accounts for 26% of sales.
“These strong results were achieved against a backdrop of lingering impacts from the Covid-19 pandemic, supply chain disruption, inflation and global economic uncertainty,” Carr said.
“The FY22 result is undoubtedly a reflection of the solid foundation on which our business is built, our agility and our ability to innovate and take advantage of opportunities in response to market dynamics.”
This approach has resulted in over 800,000 teeth of Bubs’ formula being sold in 6,000 stores across the United States through Operation Fly Formula.
Executive Chairman Dennis Lin said China and the United States will be the company’s main growth drivers going forward, with the two markets expected to be similar in terms of revenue and margin contribution over the next few years. next three years.