Bubs: Record Sales, First Profit, Expanded Markets


Bubs Australia recorded its first profit in FY22, with profits driven by the release of a new formula, strong growth across all channels, the resurgence of the daigou market and its accelerated entry into the US market thanks to Operation Fly Formula.


  • Gross revenue: $104.2 million, up 123%;
  • Underlying Earnings Before Interest, Taxes, Depreciation, and Amortization (EBIDTA): $4.8 million;
  • Group gross margin: +32%;
  • China gross revenue: up 166%, enterprise daigou gross revenue quintupled from FY21;
  • Revenue in the United States: 9% contribution to group revenue; and
  • Successful capital raising of $63 million.

CEO and Founder Kristy Carr said innovation and the successful launch of the Bubs Supreme A2 beta-casein protein formula were key factors in what has been a banner year for the company.

While the company launched its Bubs Supreme A2 line of beta-casein protein formulas in the fourth quarter, it already contributes more than a quarter (26%) of FY22 formula sales.

“Our domestic market share continued to grow ahead of the category to an all-time high,” Carr said.

The company offers products in three premium infant formula growth segments – A2 beta casein protein, organic grass-fed and easy-to-digest goat. It recorded a 38.6% growth in national digitization sales and a 4.7% market share.

“We have seen strong momentum across our China business with a revamped and reborn Corporate Daigou omnichannel model,” she said.

Daigou’s gross revenue increased five-fold in FY21. In February, Carr said demand in the Daigou channel exceeded pre-pandemic levels.

Carr said the company’s channel strategy, delivered with channel partner AZ Global, is focused on improving channel engagement and campaign activation while stabilizing pricing and new levels of stock.

In March, Bubs signed an equity stake deal with its biggest daigou distributor, giving Hong Kong-based Willis Trading a 4.82% stake in the business.

Kristy Carr, CEO and Founder of Bubs Australia, and Dennis Lin, President, with the first shipment of formula to the United States.  (Image source: Bubs Australia)
Kristy Carr, CEO and Founder of Bubs Australia, and Dennis Lin, President, with the first shipment of formula to the United States. (Image: Bubs Australia)

And then Operation Fly Formula took off.

“During the past quarter, we accelerated our access to the United States with our early acceptance of the Biden-Harris administrations’ Operation Fly Formula initiative to help American families during the infant formula shortage crisis,” said Carr.

The six Bubs Infant Formula products were launched in the United States in June under the discretion of the FDA, with US revenues contributing 9% of group revenue for FY22.

The original deal was for 1.25 million boxes, but the U.S. Food and Drug Administration (FDA) has pledged to establish a permanent regulatory pathway for recipients of discretion, allowing Bubs, l ‘one of eight brands in the world, to continue to import infant formula last November. .

Bubs Chairman Dennis Lin said, “We identified the United States as a strategic market two years ago, and our commitment to investing has fortunately coincided with a time of need for American families.

“It allows us to accelerate our strategic vision as well as provide support that goes to the core of Bubs’ DNA.”

Bubs products are now available in over 4,000 stores across the United States.


Comments are closed.