Shares of the beverage company, Bubs Australia Limited (ASX:BUB), traded down 6.122% at AU$0.460 per share at 10:30 a.m. AEST on the ASX. Despite reporting a strong quarterly report for the third quarter of FY22 and strong PCP growth with the third consecutive quarter, the company’s shares fell today.
In one year, the company’s stock rose 7%. BUB has fallen 4% year-to-date and 11% over the past six months. Recently, the stock’s performance has not improved significantly, falling 4% in five days.
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Good reading: Why Bubs (ASX:BUB) stock price could be watched today
Bubs performance in Q3
Bubs Australia has filed its Quarterly Business Report and Schedule 4C Cash Flow Statement for the third quarter ended March 31, 2022.
Key Highlights from the Third Quarter FY22 Quarterly Business Report
- Gross revenue of A$17.6 million in the third quarter increased 49% pcp, marking the third quarter of growth over the prior year.
- Positive pcp growth momentum (previous corresponding period) in all major business pillars: global, domestic and Chinese.
- Domestic infant formula retail sales increased 108% on pcp.
- Bubs achieves a 4.2% market share of the entire infant formula category, with a 40% increase in sales of scans.
- With 42.1% of the overall national goat market, Bubs is now the leading brand of goat infant formula.
- Bubs Organic increased its market share by 61.4% over the previous year.
- Total sales in China increased by 8% on pcp.
- International gross revenue increased 153% dwf, with global sales of Bubs products increasing 63% dwf.
- With 254 Smart & Final stores in the United States, the company’s market reach has increased significantly.
- Willis Trading; the main distributor Daigou, entered into a strategic alliance linked to equity; the agreement is conditional on product purchase milestones of at least A$50 million in FY22 and A$80-120 million in FY23.
- Bubs Supreme® A2 infant formula with beta-casein protein was launched in May with a “super premium” formulation, with national school distribution beginning in May and a Willis Trading order form worth A$32.9 million.
Management Note
Kristy Carr, CEO and Founder of Bubs commented:
Outlook
Consistent with previous guidance, the company expects modest sales growth in the second half of FY22, with increased revenue expected from the launch of Bubs Supreme® A2 beta-casein protein infant formula in the fourth quarter.
In the meantime, Bubs acknowledges that continued macroeconomic uncertainty and COVID-19-related supply chain disruption may lead to transient variability.
Good reading: Bubs (ASX:BUB) Sales Nearly Doubled in Q1; here’s why
