News: BUB UPDATE 1-Bubs Australia unveils new strategy, outlook amid board overhaul

(Recasts first paragraph, outlook details in paragraphs 2 and 3, chair comment in paragraph 7, adds background)

July 6 (Reuters) - Bubs Australia (BUB) on Thursday launched a five-point plan to manage working capital and optimise its portfolio, forecasting a 35% growth in net sales revenue for fiscal 2024.

The company expects to report a net sales revenue of A$80 million ($53.23 million) for its full year 2024, and also trimmed its annual operating expenses by around A$10 million but will continue to maintain its marketing investment at 15% of net sales.

Bubs, which has been focussing on streamlining its business activities locally, in China and the west, expects monthly cash burn to slump to A$2 million during the second quarter of 2024 from A$5 million.

While Bubs' minority shareholders are currently seeking a board overhaul and have requested for an extraordinary general meeting to vote out the current board of directors, the company said it would work on improving transparency and governance.

As part of the latest strategy, the New South Wales-based company has revamped its distressed China operations with new leadership and trade partners and is assessing State Administration for Market Regulation registration for China for its products.

The baby formula maker recently had its former boss and founder Kristy Carr removed during a dispute with its largest shareholder, Alibaba-backed 9988.HK private equity firm C2.

"The Board is confident that we now have the right governance structure and operational teams to deliver strong and profitable growth," Bubs Chair Katrina Rathie, who is seeking to hold her position at the EGM later this month, said on Thursday.

Bubs reaffirmed its long-term plan of securing permanent access to the U.S. market for its products from the Food and Drug Administration (FDA) while growing further into the major retailers in the United States.

($1 = 1.5029 Australian dollars)