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Shares in Bubs have surged by almost 13 per cent after the Australian baby formula producer reported its highest quarterly gross revenue.

Investors pushed the price up 0.07 cents, or 8.05 per cent, to 0.94 cents at 1200 AEST on Wednesday.

Bubs was among the top five best performing stocks during morning trade.

The shares finished 12.99 per cent higher on Thursday at the close of trade.

Shortly before trade closed on Thursday, Bubs reported its highest quarterly gross revenue thanks to booming demand for infant formula.

Bubs’ $19.7 million revenue for the quarter ended March 31 was helped by sales in China more than doubling on the same period last year.

Chief executive Kristy Carr said production of goat milk infant formula had been prioritised, with sales of that product up by 137 per cent compared with a year ago.

Despite the coronavirus pandemic, there has been minimal disruption to production and supplying overseas customers, Ms Carr said.

Total sales in Australia increased by 34 per cent, helped by supplying about 200 Woolworths stores with infant formula in March.

The formula will be supplied to about 700 of the stores by May.

Bubs’ year-to-date gross revenue is $48.5 million – already more than its 2019 full year revenue of $46.8 million.

Mr Carr said direct sales to China had doubled and there was strong demand in Vietnam.

Bubs in February reported a $7.5 million first-half net loss, although this was better than the $8.8 million loss for the first half of 2019.

The improving results have helped its share price avoid the sharp plunge of many others during the pandemic.

Since the start of the year, Bubs shares had fallen 11.22 per cent in value to 87 cents before trade opened on Wednesday.

This compares favourably with a 17.89 per cent wider market drop.