Key Financial Outcomes
- EBITDA Positive: $2.9m in H1 FY25, a sharp recovery from the $6.8m loss in the prior corresponding period.
- Revenue Surge: Q2 group gross revenue hit $32.9m, marking a 42% increase year-on-year.
- Gross Margins Climb: H1 FY25 gross profit margin soared to 48%, well above the FY25 target of 40%.
- Strong Cash Flow: Operating cash inflow of $3.9m in Q2 (a stark contrast to a $13.0m outflow in the prior year).
Cash Position
- $17.2m in cash reserves, plus $5.0m in undrawn debt facilities, providing $22.2m in total liquidity.
Regional Performance
- USA: Quarterly revenue jumped 26% to $17.2m despite a product transition phase and temporary Amazon challenges.
- China: A standout performance with revenue up 68% to $7.1m, fueled by growth in cross-border e-commerce and a burgeoning O2O footprint.
- Australia: Maintains a dominant 55% market share in goat infant formula, with revenue up 32%.
- Rest of World: Impressive growth of 92%, driven by strategic expansion.
Operational Milestones
- USA Market Expansion: Transition to new packaging formats successfully completed, with the new tins comprising 98% of sales as of early January 2025.
- FDA Clinical Trial: Enrollment phase completed for 478 infants. Final approval is expected by October 2025.
CEO Insights
Reg Weine, CEO, noted the company’s strategic focus on multi-market growth, cost management, and portfolio optimization has accelerated its turnaround. “We are on track to achieve FY25 guidance of $102m revenue, EBITDA breakeven, and gross margin over 40%,” he affirmed.
Outlook
Bubs is poised to capitalize on its growth momentum, with strong performance expected across key regions and continued progress in the USA FDA approval process. Management remains confident in its ability to deliver sustainable growth and profitability in FY25 and beyond.
