Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Why Bubs Australia Ltd (BUB) Shares Fell 10% Today

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.

[ls_content_block id=”14945″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content