Bubs Australia (ASX:BUB)
has materially upgraded its FY22 revenue and earnings guidance amid strong demand in China and unanticipated shortages in the US.
In February, the infant formula maker guided for modest growth after reporting $38.5 million in gross revenue for the first half, and $1.2 million in underlying EBITDA.
Now, it expects gross revenue to be over $100 million for FY22, and a 100 per cent increase to its underlying EBITDA at least.
“Due to a strong momentum in China and the unanticipated volume of sales in the USA, complemented by Bubs' demonstrated agility and speed to respond to the call for action with first mover advantage, fourth quarter turnover is likely to be higher than originally anticipated,” said chief executive officer Kristy Carr.
“It has been an extraordinary journey for Bubs to have had over 12 months of in-market experience to provide the first response to the USA's infant formula shortage, which is likely to change the industry landscape in the USA.”
Meanwhile, Bubs said it will continue to supply Australian retailers and export markets to meet ongoing consumer demand.
Shares are trading 3.3 per cent higher at 62 cents.