Bubs Australia (ASX:BUB) is an infant formula maker. In 2018, the company signed a sales deal worth $17 million with Chinese online distributor, New Times Asia.
Bubs Australia’s gross revenue for the first half of 2019 hit $21 million, exceeding the $17 million it banked for all of 2018 which in itself was a 330 per cent increase on the 2017 financial year.
In 2019, the company announced that they were working with a subsidiary of cheese giant Bega, Tatura Milk Industries, to make goat milk infant formula directly from fresh Australian goat milk.
Shortly afterwards, Bubs Australia announced a deal with Chemist Warehouse that saw their products stocked and distributed in all Chemist Warehouses nationally. The agreement also provided a means for Bubs infant formula to be considered for brick and mortar presences in China.
In mid 2019, the company announced a partnership with China’s largest baby store chain, Kidswant. The deal saw Bubs Australia’s products stocked in all 275 shops.
Bubs Australia has distribution deals with other companies including Alibaba and Beingmate in China. Company revenue for the 2020 financial year was $61.7 million up 32 per cent on $46.7 million in FY2019. It made an EBITDA loss of $11.3 million in the FY2020, down from $34 million a year earlier.
Chinese joint venture partner Beingmate has pledged to help the company secure a coveted State Administration for Market Regulation (SAMR) brand slot to make Bubs-branded infant formula in Beihai, China.
The company says it will continue to try and get SAMR registration for premium milk with labels in English made at its Tasmania site, aimed at tier-one cities in China, and the Beingmate-made formula aimed at “lower tier cities”.