Infant formula stock Bubs Australia (ASX: BUB) was one of several companies to release its quarterly this morning and it did not disappoint, making $18.5 million in revenue.

This was greater than the entire full year in 2018 and the full year revenue was $51.3 million – a 179 per cent increase.

While the company also produces adult products and organic baby food, infant formula was easily the best performing category, up 341 per cent.

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Curiously, despite the company’s declaration of progress in the Chinese market, Australia made up 85 per cent of its sales. This was achieved as the product rolled out into Coles, Woolworths, Big W, Amazon and Costco.

However, the Daigou market was reported as significant, although these count as Australian for accounting purposes despite the product ultimately reaching China.

While the company made $2.3 million from its operations last quarter it experienced an outflow of nearly $25 million.

Nevertheless it raised $31.4 million back in April and CEO Kirsty Carr predicts “profitable growth” in the quarter ahead.

Bubs Australia grew from 10 cents at its IPO to as high as $1.55 in early May. But it fell as low as 92 cents in June, fuelled by concern about Chinese protectionism in the market and perhaps Carr selling nearly $6 million of her shares to buy a house.

This morning it sits at $1.45, jumping 8 per cent at the market open.

In other ASX small cap corporate news today…

Remember when Oliver’s Real Foods (ASX: OLI) declared things had turned around? Last Friday’s quarterly left investors panicking this was not so. It had lost $527,000 from operations and $3.7 million in the full year. The stock lost nearly 30 per cent in the last half hour of trading on Friday.

This morning, it clarified the announcement, announcing it would produce earnings of $161,000 this quarter. And shares jumped 18 per cent to 4 cents – recouping more than half of Friday’s losses.

“This deficit simply reflects the cash flow hangover of management’s overhead reduction program and represents the final cash flow consequences thereof,” said chairman Nick Dower. The company warned investors this quarter was usually the softest.
 
Cash Converters (ASX: CCV) has left shareholders unimpressed by its results. Bad debt expenses have reduced its profitability and it estimates a net loss of $2-4 million after tax. Restructuring costs, accelerated depreciation and a $1.6 million project write-off contributed to this. CEO Brendan White asserted the company would turn things about in the year ahead.

“Our customers remain the central focus of our business and we continue to strive to deliver a customer experience that exceeds expectations,” he said. “We continue to build upon the momentum of revenue growth and operational efficiencies in 2019, thereby delivering value for stakeholders in the year ahead.”

Shareholders have sent the stock down 7 per cent to 14 cents and down 40 per cent in 2019.
 
Jiajiafu Modern Agriculture (ASX: JJF) has not given up the ghost just yet. In recent months, several other Chinese small caps have been suspended or delisted due to regulatory issues. But unlike others, Jiajiafu has followed through with its promise to find a replacement director – accountant Edmond Zhang.

The ASX is investigating its 2017 IPO and 157 off-market trades in the proceeding months. All these trades were for the same amount of shares and directly to four specific shareholders. Listing rules require newly listed companies to have 300 shareholders and at least 25 per cent of shares not held by related parties. It also prohibits ‘artificial’ security holdings which includes splitting one beneficial holding across multiple family members, companies and trusts.

The ASX is concerned that JJF may have obtained its minimum spread using artificial means. The company told shareholders this morning it will not be reinstated until the investigation is complete.