Bubs Australia (BUB) H2 2024 earnings summary

Executive summary

• FY2024 net revenue reached AUD 80 million (USD $79.7m), up 33–34% year-over-year, driven by strong growth in the USA and China, and in line with guidance.

• Delivered underlying gross margin above 40% (reported: 49%), with margin improvement across all regions.

• Statutory EBITDA loss of AUD 20 million (USD $(19.7)m), net loss after tax of AUD 21 million (USD $(20.9)m), including non-recurring costs.

• Significant progress on US FDA clinical trial, on track for permanent market access in October 2025.

• Successful capital raising supported investment in working capital, growth initiatives, and regulatory costs.

Financial highlights

• FY24 revenue: AUD 80 million (USD $80m), up 33–34% year-over-year; underlying gross margin: 41% (reported: 49%).

• US gross revenue grew 46–48% to $35–47.3 million, with record Q4 scan revenue and expanded retail presence.

• China revenue up 27% to AUD 17–17.3 million, with improved gross margin and reduced marketing expense.

• Australian revenue rose 24% to AUD 21.6 million, maintaining #1 goat formula brand with 52% market share.

• Cash and cash equivalents at period end were AUD 18 million (USD $17.7–18m); normalized cash burn at AUD 1.2 million per month.

Outlook and guidance

• FY2025 net sales revenue forecast at AUD 102 million (USD $102m), a 28% increase, with USA and China expected to grow 50% year-over-year.

• Gross margin expected to remain above 40%, with a clear path to positive EBITDA before share-based payments.

• No material one-off expenses anticipated in FY2025; focus on cost discipline and margin improvement.

• Plans for Canadian market entry in H2/Q3 FY2025 and continued international expansion.