A2 Milk & Bubs Australia Ltd. Navigate Challenging Times - Kalkine Media

November 22, 2023 01:36 PM AEDT | By Team Kalkine Media
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The stock market can be a rollercoaster, and the recent performances of A2 Milk Company Ltd (ASX: A2M) and Bubs Australia Ltd (ASX: BUB) are a testament to this volatility.

In the latest turn of events, A2 Milk shares have taken a dip by 1.87%, currently resting at AU$3.935 apiece (at 1:13 PM AEDT). Simultaneously, Bubs shares are frozen at 16.5 cents each after the ASX granted a trading halt request, potentially signaling a capital raise for expansion.

Bubs' trading halt request aligns with their plans for a potential capital raise, aimed at fueling their expansion endeavors, primarily focusing on penetrating the United States market.

A2 Milk's Challenges

A2 Milk faced a challenging year, with a substantial impact from COVID-19 on its operations. Furthermore, the China market, a significant revenue source, witnessed a decline due to fewer births and reduced market pricing.

Statements from A2 Milk's CEO

Managing Director David Bortolussi acknowledged shareholders' disappointment regarding the company's share price. He attributed the decline to market challenges, macro-economic conditions, and geopolitical concerns.

A2 Milk's Future Projections

Despite the market turmoil, A2 Milk maintained its FY24 guidance. This unexpected stance led to a positive upgrade from top broker Citi, projecting aAU $4.81 price target for A2 Milk shares.

Bubs Australia's Annual General Meeting

CEO Reg Weine addressed Bubs' performance, acknowledging a subpar FY23 but assured stakeholders of a balanced balance sheet and future growth initiatives.

Focus on Bubs' US Expansion

Weine emphasized Bubs' investments in the US market, leveraging opportunities in goat milk formula and boasting significant distribution across various retailers.


Both A2 Milk and Bubs Australia Ltd have weathered challenging times, yet they exhibit determination to navigate through uncertainties, focusing on strategic growth initiatives.


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