Record quarterly revenue at $19.7m - 67% uplift pcp and up 36% on previous quarter
• Positive quarterly operating cashflow of $2.3m • Strong cash balance at the end of the quarter of $36.4m • Significant increase in demand through all channels, with direct sales to China more than doubling
• Continued focus on achieving profitability as business scales
Bubs Organic® Grass Fed Infant Formula on-shelf in 482 Coles supermarkets from June 2020, complementing existing ranging of Bubs® Goat Milk Infant Formula and Bubs Organic® Toddler Snacks already sold in Coles supermarkets nationally.
• Baby Bunting, Australia’s largest nursery retailer, to range Bubs® Goat Milk Infant Formula, Bubs Organic® Grass Fed Infant Formula, baby food pouches and cereals in 52 stores from May 2020
.• Increased store ranging in Woolworths to 800 stores for Bubs Organic® Grass Fed Infant Formula and 654 stores for Bubs® Goat Milk Infant Formula from May 2020.
• Collectively these new agreements are expected to materially add to the Company’s domestic revenues from Q4 FY20, with all initial orders being processed in May 2020.
• Expands Bubs Organic Infant Formula presence to over 1,850 points of sale across Australia, and a selection of Bubs infant nutrition portfolio to over 2,000 stores nationally.
Melbourne, 6 May 2020:
Bubs Australia (ASX: BUB) announces it has entered a new supply agreement with Coles Supermarkets Australia under which Bubs Organic® Grass Fed Infant Formula will be distributed to 482 Coles supermarkets, with initial orders to be processed in mid-May and on-shelf in early June 2020.
The incremental distribution of Bubs Organic® Grass Fed Infant Formula is in addition to the continued sale of Bubs Goat Milk Infant Formula ranged in 561 stores and Bubs Organic® Toddler Snacks ranged in up to 804 stores.
Coles is Bubs longest retail partnership first established in 2008 and has sold Bubs Goat Milk Infant Formula since April 2016, followed by the expansion into Bubs Organic toddler snacks in May 2019.
Bubs Founder and Chief Executive Officer, Kristy Carr said: “This is a continued vote of confidence in Bubs brand portfolio from Coles and demonstrates Bubs strong performance in the superpremium specialty infant formula segments, and confidence in the capability of our vertically integrated supply chain to meet our commitments under the new supply agreement. “Moreover, this agreement with Coles establishes Bubs® as a significant participant in the superpremium organic infant formula category.
Bubs Australia Limited ACN 060 094 742 23-29 Nina Link, Dandenong South VIC 3175 Australia 1800 2827 2878 (1800 BUBS AUST) [email protected] In addition to the Coles agreemWith such strong penetration across all major retail points of distribution in the Australian grocery and pharmacy sector, we are confident the Bubs Organic range will support continued portfolio-wide growth in our domestic volume as we continue to build awareness and trust in the Bubs brand with Australian parents,” Mrs. Carr said. ent, t
The Company has entered a new supply agreement with Baby Bunting, Australia’s largest nursery retailer, to range a total of 16 products, including Bubs Goat Milk Infant Formula, Bubs Organic® Grass Fed Infant Formula, and Bubs Organic® baby food pouches and cereals in 52 stores. Initial orders have already been processed and products are expected to be on-shelf and online in May 2020.
In addition, as a further update to the Announcement posted on the ASX on 18 February 2020 regarding a new major supply agreement with Woolworths, the Company is pleased to advise Woolworths has further increased the store ranging for Bubs Organic® Grass Fed Infant Formula from 700 stores to 800 stores, and Bubs Goat Milk Infant Formula from 400 stores to 654 stores.I The expanded distribution will be implemented on-shelf in May 2020 and pipe-fill orders have already been processed. Collectively these new supply agreements are expected to materially add to the company’s domestic revenues from Q4 FY20,
with all opening orders to be dispatched in May.
BUB Price at posting:
$1.09 Sentiment: Buy Disclosure: Held
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