I think Bubs is one of the most exciting ASX small caps. It’s an infant formula business with a specialty in goat products. Bubs is rapidly growing in overseas markets. In the latest quarter, it grew total revenue by 67%. But Chinese revenue increased by 104% and other market revenue rose by almost 20 times.
Careful spending meant Bubs generated a positive operating cashflow last quarter. If revenue growth continues to be strong it could remain cashflow positive from here with a long growth runway. Other Asian countries are prime growth targets, such as Vietnam. One to watch in 2020 and beyond.
Motley Fool contributor Tristan Harrison does not own shares in Bubs Australia Ltd.
BUB Price at posting:
$1.07 Sentiment: Buy Disclosure: Held
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