Bubs Australia (BUB) H2 2024 earnings summary

Executive summary

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

• Delivered underlying gross margin above 40%, with reported gross margin at 49%, exceeding guidance.

• Statutory EBITDA loss of AUD 20 million and net loss after tax of AUD 21 million, including AUD 11 million in non-recurring costs; significant improvement from prior year.

• Significant progress on US FDA clinical trial, with >95% patient enrollment and permanent market access on track for October 2025.

• Launched new high-margin products, completed major global rebranding and packaging upgrade, and expanded retail presence.

Financial highlights

• FY2024 revenue: AUD 80 million (USD 80m), up 34% year-over-year; underlying gross margin: 41% (reported: 49%).

• US gross revenue grew 48% to $47.3 million, with record Q4 scan revenue and strong retail expansion; USA revenue up 46% to $35m, now 44% of total revenue.

• China revenue up 27% to AUD 17 million, with H2 sales up 38% over H1, improved profitability, and gross margin at 39%.

• 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; 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 at least 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.

• Permanent FDA approval for US market anticipated in October 2025; Canada market entry planned for H2/Q3 FY2025.

• Plans for continued international expansion, including Canadian and other new markets.