Bubs Australia (ASX: $BUB) US Market Update

Bubs Australia Limited (ASX: $BUB) has announced significant growth and progress in the US market. The company reported a remarkable +161% increase in scan sales for the latest quarter compared to the prior corresponding period, with a quarter on quarter growth of +8.3%. Additionally, Bubs achieved a new scan sales record in Amazon during the week commencing 26/2/24. Furthermore, the company has made meaningful advancements on the US FDA permanent access pathway and clinical trial, with 200 infant enrolments, representing 50% of the target, as of 18/3/2024.

Reg Weine, Bubs CEO and MD, on US Market Growth

Now that we are back in a full stock position our US team have increased our e-commerce marketing activities and our in-store activation with our major retail partners. We are seeing the immediate benefits of our marketing efforts, demonstrated by the increased consumer offtake at store level and on the Amazon platform, where Bubs products are the 5th & 6th best-selling infant formula products in the category. With additional ranging secured in Walmart, Target and Kroger and with strong consumer demand for our products and brands, we are well placed to deliver sustained revenue growth in the US market. With the continued top line momentum, strong gross margin delivery and a reduced operating expense profile, we remain confident that we will be cash flow positive and trading EBIT positive in FY25.

Bubs Australia (ASX: $BUB) US Market Outlook

Bubs Australia's strong sales growth and market progress in the US, as evidenced by the significant increase in scan sales and the achievement of a new sales record in Amazon, reflect the company's successful expansion and consumer demand for its products. With additional ranging secured in major retail partners such as Walmart, Target, and Kroger, Bubs is well-positioned to sustain revenue growth in the US market. The company's confidence in achieving cash flow positivity and trading EBIT positivity in FY25 is underpinned by the continued top line momentum, strong gross margin delivery, and a reduced operating expense profile. Bubs Australia's strategic initiatives and consumer demand indicate a positive outlook for its future performance in the US market.