- Bubs Australia quarterly growth driven by additional revenue streams for infant formula.
- Q4 gross sales up 531% to $8.89 million.
- Export sales to China grew 644% to $1.9 million, accounting for 22% of total quarterly gross revenue.
Organic infant formula maker Bubs Australia lifted gross sales by 531% to $8.89 million in the fourth quarter compared to same three months last year as demand takes off in China.
Compared to the previous quarter, sales were 63% higher.
“During the quarter, we saw a strong growth trend with material uplift in infant formula and overall sales to China delivering our highest quarterly revenues,” says Bubs Australia Founder and Managing Director Kristy Carr.
“The sales performance reflects both a 99% year on year increase in Bubs infant formula and the additional sales from the NuLac Foods portfolio.
“Our China route-to-market strategy advanced significantly with several new cross-border trading partnerships.”
Fourth quarter export sales to China grew 644% to $1.9 million, accounting for 22% of the group’s total quarterly gross revenue.
The company last month closed a $40 million equity placement to professional and sophisticated investors.
“Recent capital raising will provide the necessary working capital and inventory management to support growth in market development, supply chain, brand marketing and product innovation,” says Carr.
“The new capital is expected to support the next stage of growth and take the company to profitability.”
The company also announced last month a Merchant Service Agreement with Alibaba, the largest e-commerce platform in China, for a Flagship Store on Tmall Global.
Mother and Baby products are the second largest category on Alibaba, spearheaded by infant formula. Infant nutrition cross-border sales increased 8.8% last year on the platform, with the strongest growth drivers coming from organics, specialised formula and goat milk products.
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