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Bubs Australia Ltd (ASX: BUB) has witnessed an 8% increase in its share price, reaching 13.5 cents, following an update on its performance in the United States market. This development is significant in the context of ASX consumer stocks. The company reported robust growth and increasing consumer demand in the US, resulting in a record weekly revenue of $770,000 in November.
Despite recent stock shortages, Bubs is recognized as the leading goat milk brand for infant formula in the US, having sold over 330,000 tins year-to-date by the end of November, compared to 400,000 in the previous financial year. The company has expanded its presence to more than 5,900 stores across the country, underscoring its position in the US market. Investors in ASX consumer stocks may find Bubs Australia's performance noteworthy amid these positive market dynamics.
Bubs management expects the US net revenue to reach at least $48 million in FY 2024, doubling the previous year's figures. The recent expansion of infant formula recommendations by the American Academy of Pediatrics to include goat milk-based products is seen as a positive development for Bubs.
CEO Reg Weine expressed optimism about the company's growth prospects, noting that despite supply chain interruptions and inventory shortages, Bubs achieved record weekly sales in November. The company plans to address the increasing demand by moving to a full second shift at its manufacturing facility in mid-January 2024.
While the Bubs share price has experienced a 55% decline over the past 12 months, the positive performance in the US market seems to have sparked investor interest.
