BUB bubs australia limited

Thanks for sharing this info.I also tried to compare BUB (which...

  1. 698 Posts.
    lightbulb Created with Sketch. 217
    Thanks for sharing this info.

    I also tried to compare BUB (which I held) with A2M (which I hold) under the - one could say fair - assumption that BUB is maybe 5 years behind A2M in its own life cycle. You dug this information out and kudos to you. The striking difference is the gross margin. A2M, as you demonstrated had a positive gross margin right from the start. BUB never ever achieved that sort of margin at any stage. Always reported a loss already at gross margin. BUB's strategy is over the years to grow out of it, by increased sales. If you compare the operating margin column on the Commsec website for A2M and BUB for the last four years, the difference is ABSOLUTELY STUNNING.

    Of course, BUB's sales growth EASILY beats A2M's growth. In the process of it, BUB eroded its capital. Hence the repeated CRs.

    Initially I invested into BUB, because I thought goat milk would a premium product and consumers would be happy paying a premium price; leading to a good margin. But that's not happening for years now. Apparently, goat milk is costly, competition is tough and consumers do not pay up enough to allow for a large gross margin. Although massive sales growth has been achieved, economies of scale have been elusive. - BUB management of course is aware of this, and this explains today's announcement to support " the launch Vita BubsTM into the high margin adjacent Vitamin and Mineral Supplements category". BUB is trying both, increasing profit margin and increasing sales in China. It seems utterly difficult to make and sell goat milk product as profitably as cow milk. I have learnt, the cow milk business is not the same beast as goat milk business. This is despite the fact that Kirsty Lee is probably the most committed goat milk ambassador (remember she started this with her sister) in Australia.

    It is a matter of debate and speculation where the tipping point is, i.e. when BUB can report a positive gross margin. I am a non holder now. I think the odds are too long.

    GLTAH

    This should be my final post here. I don't want to be a spoil sport.
 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)
Last
16.0¢
Change
0.000(0.00%)
Mkt cap ! $142.9M
Open High Low Value Volume
16.5¢ 16.5¢ 15.8¢ $240.2K 1.490M

Buyers (Bids)

No. Vol. Price($)
14 404981 15.5¢
 

Sellers (Offers)

Price($) Vol. No.
16.0¢ 82249 7
View Market Depth
Last trade - 16.15pm 30/07/2025 (20 minute delay) ?
BUB (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.