The Bubs Australia Ltd (ASX:BUB) share price was trading 10.49% lower today following the release of its quarterly financial report.
For context, the broader Australian share market or S&P/ASX 200 (INDEXASX: XJO) was trading at 6933.6, down 1.19%.
About Bubs Australia Ltd
Bubs was founded in 2006 by Kristy Carr and was listed on the ASX in January 2017. Its infant formula is based on goat milk and it also sells organic baby food. Bubs recently acquired NuLac Foods, Australia’s largest producer of goat milk products, it also guarantees the exclusive supply of local goat milk from Australia’s largest herd of milking goats.
What you need to know about Bubs Australia Ltd’s financial report
In the Rask video above, Owen explains the difference between ‘underlying’ or ‘normalised’ results and ‘statutory’ results. Knowing the difference between these two numbers is essential to understanding a financial report.
In its quarterly report, Bubs reported gross revenue of $14.54 million, up 21% on the prior corresponding period.
“Bubs Infant Formula has been a stand-out, up 77 percent over the same period last year and more than doubling quarter over quarter,” CEO and Founder Kristy Karr said.
Ms. Karr was pleased to mention the company’s ongoing product development and supply chain agreements with heavyweights like China’s ecommerce giant, Alibaba (NYSE: BABA).
In China, Bubs reported a 32% fall in quarterly sales, with the market now representing 15% of overall group sales.
During the quarter, Bubs raised an additional $35 million of cash by selling shares to institutional investors ($30 million) and other shareholders ($5 million).
Bubs Chair Dennis Lin said the capital will be used for a variety of strategic initiatives, especially in overseas markets.
“Along with meeting M&A commitments, funds raised will be used to enhance the company’s financial flexibility to take advantage of future growth opportunities in China and our new emerging Asian markets, as well as advance new product development under our core infant portfolio and brand extensions in the non-infant goat dairy sector.”
Bubs shares were last seen trading down 10%, giving the company a market capitalisation of $409 million, according to Google Finance.
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