Bubs riding US infant formula sales boom






Infant formula manufacturer Bubs Australia is riding a wave of success exporting formula to the United States, announcing record fourth quarter gross revenue of $48.1 million, up 278 percent on the previous corresponding period.

This is the fourth consecutive quarter of growth on prior year recorded by the company, which is air freighting emergency supplies of formula to the US which is experiencing shortages, leading to direct action by President Joe Biden.

The company said second half gross revenue was up 168 percent and FY22 gross revenue was double the previous half at $104.2 million.

Bubs CEO Kristy Carr said: “The last quarter has seen the business reach critical mass following exceptional growth across Australia, China, and rapid expansion in the US.

“This business diversification and increased scale of our most profitable products and channels has flowed through to our operating margins, delivering profitability for the full year, excluding non-cash equity compensation expenses.”

Bubs said it had sustained growth momentum across all key product segments (A2 Beta-Casein, Organic Grass- fed, and Easy-digest Goat infant formula), and all key markets (Australia, China and USA).

More than 540,000 tins of formula was delivered between May and July to the US, funded by the US government’s ‘Operation Fly Formula’.

They are now sold in over 5,400 stores across 34 States, including Walmart, Kroger, Albertsons/Safeway and Target.

Bubs products will be imported tariff free under the United States-Australia Free Trade Agreement (AUSFTA).

Picture: Kirsty Carr

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