Baby formula brand Bubs Australia (ASX:BUB) have reported a positive operating cashflow of $2.3 million on sales of $23.4 million for the first 2020 quarter ending March 31, 2020.
Sales were up by 67 per cent from the previous quarter.
Bubs Founder and Chief Executive Officer, Kristy Carr said: “The Bubs infant formula range performed strongly, up 137 percent over the prior comparable period and 33 percent quarter-on-quarter, with Chairman Dennis Lin adding the company revamped their online store to ensure continuity of supply to Australian families who may have difficulties accessing their regular stores.
Although, compared to the Australian market, demand from China was up a staggering 104% pcp with the company saying they doubled their direct sales to China.
This is despite the ongoing controversial Daigou syndicated group crisis Australia is facing, a form of Chinese cross-border exporting, the company did not comment on why Australian demand still has a significant shortage with big supermarkets still enforcing a 2 tin maximum purchase on baby formula.
Shares in Bubs Australia (ASX:BUB) are trading 7 cents up at 95 cents.