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

November 22, 2023 01:36 PM AEDT | By Team Kalkine Media
Follow us on Google News:

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.

Conclusion

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


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.



Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK