Bubs Australia Share Price Grows

This morning Bubs Australia Ltd [ASX:BUB] rose 11.45%, maintaining their consistent rise in stock value.

Founded in 2005, Bubs produces a large range of infant food and prides itself on using organic ingredients.

With a market cap of $276.79 million and an enterprise value of $179.69 million, Bubs continue to strive for success as their quarterly revenue growth is up by 50.20%

Their overall revenue stands at $3.95 million.

What has Bubs Australia been up to?

Bubs has recently announced they have entered an international supply agreement with Chinese online company JD.com International Limited.

JD.com is a retail giant, as they have over 266 million annual active users and operate with hundreds of warehouses and districts across China and other countries.

This deal will result in Bub’s entire range of products being available for purchase on the JD.com platform as early as March.

CEO of Bubs Nicholas Simms, believes that the Chinese market is a viable option for Bubs to expand in and pursue.

Bubs plans to increase its overall exposure and sales with this partnership.

They have grown over the last 12 months, but they have not seen much of an impact in sales growth.

Bubs has maintained a healthy balance sheet, with a total of $8.7 million in cash reserved from late December last year as well as little to no outstanding debt.

Bubs plans to tackle the future

Bubs will still maintain their unique branding by standing out from the market with their product line, such as goat milk and other varieties.

They wish to become Australia’s only producer of goat milk formula.

For the time being, they are focusing on their transition and growth prospects into the Chinese market.

We see this as a really critical turning point for us, to be able to lay down the pathway to provenance for our products, both domestically but also in Asia,’ Chief executive Nicholas Simms states.

He described the partnership as a brand combination and believes it will give Bubs the ability to manage the milk flow in an appropriate order.

Bubs seem to have the right idea by parenting with a titan of a Chinese company. In fact, China is well on its way to boom again. Sam and Harje from Money Morning can explain more in their free report ‘China’s New Boom: Three Aussie Investments Primed to Soar in 2018 and Beyond’.

Regards,

Ryan Clarkson-Ledward,
For Money Morning


Ryan Clarkson-Ledward is one of Money Morning’s junior analysts. Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects. Ryan’s primary focus is assisting Sam Volkering with background research and insight for readers by dissecting the latest events affecting the world. Working closely with Sam, they explore the latest in small-cap and technology stocks as well as cryptocurrency opportunities. You can find Ryan’s contributing research, developments, and supporting information across several e-letters, including:


Leave a Reply

Your email address will not be published. Required fields are marked *

Money Morning Australia