Infant formula maker Bubs Australia is rolling in cash: it made more money in the last six months than it did for the entire 2018 financial year.

Bubs (ASX:BUB) is one of the ASX’s baby formula crew and one of the bigger small caps in that sector with a market value of $190 million.

While infant formula sector isn’t sparking the investor excitement it once was, some are still making tonnes of money.

Bubs’ 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.

There was a wealth of other highlights, including December quarterly revenue rising 499 per cent year-on-year, total product sales up 216 per cent and domestic growth rising 375 per cent.

The big driver was Chinese sales: up 2,281 per cent compared with Q2 2018 and up 121 per cent on the September quarter.

Bubs shares were fetching 47.5c in early Thursday trade, up 10 per cent, though they’re well short of highs of over a dollar in late February 2018.

Bubs Australia (ASX:BUB) shares over the past year.

The company is still burning cash though, with the negative cashflow brought about by product manufacturing and operating costs.

It has $26.7 million in the bank and expects to spend $14.5 million in the next quarter.

Kristy Carr, founder and CEO of Bubs, said the company was making “significant progress on closing the gap between revenue and production and operating expense”.

“As foreshadowed at the last report, we are now in a position to deliver sustainable locally sourced production of infant formula and have invested significantly in production anticipating increased sales volume related to our expanding network of Chinese partners,” she said.

“Our overall strategic direction remains unchanged. It has delivered excellent volume growth in the premium infant nutrition segments both here and overseas, with a key focus on China. We continue to invest in product development and expect to release new product innovation in the market during the coming months.”