Bubs Australia (BUB) H2 2025 earnings summary

Executive summary

• Achieved FY25 revenue of $102.5M, surpassing the $100M target, with 29% year-over-year growth driven by strong demand in key markets, especially the USA.

• Positive underlying EBITDA of $0.6M, a turnaround from a $20.3M loss in FY24, reflecting improved margin and cost control.

• Delivered positive operating cash flow of $6.1M and net assets of $42.5M, supported by disciplined working capital management.

• New CEO with 30+ years in consumer products and dairy, focused on people, partners, and business performance.

• Strategic focus on operational resilience, long-term profitability, and working capital benefits.

Financial highlights

• Revenue increased 29% year-over-year to $102.5M, with the USA contributing 52% of total revenue.

• Gross profit margin at 48%, surpassing the 40% commitment.

• Underlying EBITDA positive at $0.6M; baseline EBITDA $5.5M, a turnaround from $20.3M loss in FY24.

• Positive operating cash flow of $6.1M, a $32.4M improvement over prior year.

• Cash and cash equivalents at $17.4M, with all borrowings repaid and full $10M facility available.

Outlook and guidance

• Strategy update planned for late November 2025 to map out full potential and resource alignment.

• Expectation to rebuild inventories in early FY26, impacting operating cash flow in the first half.

• Gross margin expected to normalize at 40%-45% as tariffs and potential air freight are absorbed.

• Continued investment in marketing, especially in the U.S., to drive brand equity and customer acquisition.