Ann: Bubs Australia - Half Year Results Commentary, page-11

It seems you are determined to block out the "noise" i.e. anything negative whether justified or not.

This is not AMP and I'm not parroting UBS or any other institutions.

I've watched and invested in infant formula for the past 10 years. I've been through massive downturns with Bellamy's and A2 Milk and have seen the different ways that management have responded to these. I can tell you from experience that it never pays to only focus on the positive things the company wants you to hear.

I think everyone agrees that BUBs completely stuffed their China strategy with the debacle that was AZ Global and Bubs Supreme. What I am saying is that the China "reset" is not actually addressing the underlying issue, which is the total reliance of their strategy on daigou.

No problem, you might say, because they can just replace China sales with USA. But the problem is that the size of the USA opportunity is much smaller, is more cost intensive (they will have to sell at very large volumes to ever make any profit), and if the market does truly open up, they will begin to be squeezed by other competitors. A2M has only just gotten around to launching and has barely distributed to any physical stores yet.

Say what you want about Bellamy's and A2M but they never lost sight of the main opportunity which is China, and that is what got both companies out of rock bottom (abeit in different ways).