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Goat's milk formula producer Bubs Australia (ASX: BUB) continues to herd in more consumers with its expanded range of products and channels, delivering 67 per cent year-on-year sales growth in the third quarter.
The $19.7 million revenue figure also represents 36 per cent growth on the December quarter, while operating cash flow was positive at $2.3 million.
This takes the company's cash balance to $36.4 million, and the news has also lifted BUB shares by 8.62 per cent today to $0.94 each.
"As a designated Essential Service, we continue to uphold a solid supply chain with minimal disruption to our manufacturing operations," says chief executive officer Kristy Carr (pictured).
"This has enabled us to meet increased domestic demand as well as commitments to our international strategic partners with heightened safety and operating practices."
Carr highlights a decision to prioritise production of the Bubs Goat Milk Infant Formula range in the last quarter, which saw its sales rise 137 per cent year-on-year and 33 per cent quarter-on-quarter.
"Our home market represented 64 percent of gross sales for the quarter, including a 140 percent increase relative to the prior comparable period," she says.
"This segment includes sales to our key national retail partners, such as Coles, Woolworths, Big W, Amazon and Chemist Warehouse.
"In March 2020, we began ranging Bubs Organic Grass Fed Infant Formula in around 200 Woolworths stores, ahead of the plan to be on-shelf in 700 stores in May."
She notes export revenue has also increased as Bubs ships its product via sea-freight to strategic partners, including Alibaba for online sales into China through its Centralised International Procurement initiative, and the Beingmate Joint Venture.
"In addition to doubling direct sales into China, we have experienced growth across all channels and key partners," says Carr.
"In particular, there has been strong demand from Vietnam during the quarter with frequent replenishment expected into April and beyond."
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