News
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”.
RELATED STOCKHEAD STORIES
Food & Agriculture
Got Milk: Which infant formula stocks shrugged off the coronavirus drag in February?
Food & Agriculture
Health: Bubs bathes market in milk as it spends up large on sales growth
Food & Agriculture
Food & Ag: Selling juices to China is tough right now, so Food Revolution Group is joining the ASX’s ‘germ fighters’
News
Short and Caught: The ASX stocks investors are shorting right now
News
Hot Money Monday: The most-in demand stocks on the ASX right now
Food & Agriculture
Got Milk: Only one infant formula stock stood out in January
News
These China-focused stocks are enjoying good fortune ahead of the Chinese New Year
Food & Agriculture
Got Milk: December was a better month for infant formula stocks; but the standout was in goat milk
News
Rise and Shine: What you need to know before the ASX opens
News
Corporate: Strategic investor likes Papyrus’ fibre from bananas idea; shares double
Food & Agriculture
Food & Ag: It looks like the sun is finally starting to shine for Murray River Organics
Food & Agriculture
Got Milk: Just four stocks were in the green in October as the industry continued to evolve
Food & Agriculture
Got Milk: Bellamy’s leads dairy formula stocks to healthy month
Food & Agriculture
Bellamy’s contentious takeover offer is moving small cap infant formula players
Food & Agriculture
The majority of small dairy stocks are curdling amid tough market conditions
Food & Agriculture
Got Milk: Dairy formula stocks largely stable as big stocks lead recovery
Director Trades