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Bubs’ first-half loss more than doubled to $8.8 million after the infant formula maker invested in scaling up to meet demand from China.

Sales for the six months to December 31 rose more than sixfold to $19.5 million but the company cited “the high costs associated with developing products suitable for direct importation into China” and with meeting regulatory requirements for a fall in earnings.

Net loss widened from $3.9 million in the prior corresponding period but founder and chief executive Kristy Carr on Thursday hailed the “strong revenue trajectory”.

She flagged the improved second-half margins expected following Wednesday’s announcement of an agreement with Tatura to simplify processing.

The supply agreement will increase the freshness of Bubs’ goat milk powder while cutting production costs due to the elimination of a drying and rehydration stage.

“The company continues to explore opportunities to develop its supply chain and refine its manufacturing capability, specifically in relation to infant formula and key dairy ingredients,” Ms Carr said.

Bubs shares had slipped 4.24 per cent to 56.5 cents by 1354 AEDT, giving up all the gains made on the previous day’s Tatura announcement.

BUBS’ H1 REVENUE BURST

* Net loss $8.8m v $3.9m in pcp

* Revenue $19.5m v $3.25m

* No interim dividend