Bubs Australia (BUB) H1 2025 earnings summary

Executive summary

• Achieved first-ever net profit after tax of AUD 3.6 million for 1H FY25, an improvement of AUD 11.2 million year-over-year, reversing a prior loss.

• Revenue grew 23% year-over-year to AUD 48.5 million, with strong growth in all regions, especially the USA and China.

• EBITDA turned positive at AUD 0.5 million, a significant turnaround from a loss of AUD 6.2–7 million in the prior period.

• Gross margin reached 50%, exceeding the 40% target, reflecting premium brand positioning and improved inventory management.

• Net cash used in operating activities reduced to AUD 0.5 million from AUD 12.2 million year-over-year.

Financial highlights

• Revenue: AUD 48.5 million (+23% YoY); USA AUD 23.2 million (+28%), China AUD 10.2 million (+45%), ROW AUD 4.6 million (+85%), Australia AUD 10.5 million.

• Gross margin: 50% for the half, up from 49% YoY.

• Operating expenses to revenue ratio decreased to 52% from 66–68% YoY.

• Net profit after tax: AUD 3.6 million, compared to a AUD 7.7 million loss YoY.

• Basic and diluted EPS: AUD 0.004 (vs. AUD (0.010) YoY).

Outlook and guidance

• Full-year revenue guidance of AUD 102 million, up 28% YoY.

• Gross margin expected to expand to approximately 45% for the full year.

• Anticipates being EBITDA positive before share-based payments and cash flow positive in Q4 FY25.

• FDA clinical study submission by June 2025, with permanent U.S. market access expected by October 2025.

• Canada market entry now expected in FY26.