Bubs Australia achieved $79.7 million group revenue in FY24, which was in line with its guidance and a 33 per cent increase on the prior corresponding period (pcp). While it reported a statutory after-tax loss and full year EBITDA loss, both were a sizeable improvement on FY23.
Bubs CEO, Reg Weine, said, “This first year in our turnaround strategy was a pivotal one and an important step in the right direction as we continue to build momentum in the USA and reset our China business.
“We achieved very strong growth in our two key strategic export markets, with USA revenue up 46 per cent and China revenue up 27 per cent on FY23. We also grew very strongly in our home market and our rest of world markets including Japan and Vietnam.
“Pleasingly, we achieved revenue of $80m during the year in line with our revenue guidance.”
Snapshot
- Group revenue: $79.7m, up 33% on prior corresponding period (pcp) (FY23: $60.1m)
- EBITDA loss: $(19.7)m, 71% improvement pcp (FY23: underlying EBITDA of $(69.1)m)
- statutory after-tax loss: $(20.9)m, 81% improvement pcp (FY23: $(108.4)m)
- USA revenue: $35m, up 46% pcp, representing 44% of revenue (FY23: $23.9m)
- Australia revenue: $21.6m, up 24% pcp, representing 29% of revenue (FY23: $17.3m)
- China revenue: $17.3m, up 27% pcp, representing 22% of revenue (FY23: $13.6m)
- ROW revenue: $5.9m, up 12% pcp, representing 9% of revenue (FY23: $5.2m)
Bubs is selling in the US market under the FDA’s enforcement discretion but has 95 per cent of its target enrolments for the Growth Monitoring Study needed to gain FDA approval. That is expected in October 2025.
At the end of FY24, it launched new product variants, labels, and pack formats with key US retailers. One of the new variants – Essential – received the Good Housekeeping Parenting Award and is expected to be a solid contributor to revenue growth in the US in FY25.
Weine said its China reset strategy was well underway, with Bubs achieving 27 per cent revenue growth over FY23 ($13.6m). There is strong demand for Bubs’ adult goat formula in China, with sales of adult goat products up 79 per cent over FY23 ($5.1m). The company anticipates 50 per cent revenue growth in China in FY25.
Bubs achieved $5.9m and 12 per cent revenue growth in other international markets compared to FY23 ($5.2m). Growth in Bubs’ ROW operating segment has been driven by Japan and Vietnam. Revenue for ROW has grown at a CAGR of 20 per cent from FY20 ($2.5m) to FY24 ($5.9m), highlighting the strong momentum in these markets.
On 16 August 2024 Bubs was granted authorisation to sell both Bubs Goat and Bubs Essential infant formula under Health Canada’s Interim Policy and Transition Strategy via discretionary enforcement, which will enable Bubs to launch into the ~US$340 million Canadian market in H2 FY25.
And in Australia, it is the largest player in the Australian goat IMF market, with 52 per cent market share. Weine said it is the fastest growing MAT supplier in Australian major retailers, growing at 12.1 per cent, or 6x faster than the market growth of 2.2 per cent and demand for Bubs’ branded goat IMF remains very strong.
