Bubs Australia: A Smart Investment Move?

is bubs australia a good investment

Bubs Australia Limited (ASX: BUB) is a producer of infant nutrition products, including organic baby food, goat milk infant formula, and adult goat milk powder. The company was incorporated in 1993 and is based in Dandenong South, Australia. Bubs Australia has seen significant growth in recent years, with its gross revenue for the first half of 2019 surpassing its total revenue for 2018. The company has distribution deals with companies in China and exports its products to the United States, Southeast Asia, and the Middle East. As of June 2025, Bubs Australia's market capitalization was 141.11 million, and its share price was $0.16. So, is Bubs Australia a good investment? Let's explore further.

Characteristics Values
Company Type Infant formula maker, producer of infant nutrition products, adult powder, and canning services of nutritional dairy products
Products Organic baby food, goat milk infant formula, adult goat milk powder, cow's milk, fresh dairy products, organic snacks, plant-based baby food pouches, cereals, and porridges
Market Cap 141.11M
EPS (TTM) -0.01
Share Price AU$0.12, AU$0.16
PE Ratio 0.04
Gross Revenue (2019) $21 million
Company Revenue (2020) $61.7 million
EBITDA Loss (2020) $11.3 million
Number of Employees 87
Dividends None
Overall Recommendation Buy
Rating Neutral

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Bubs Australia's share price

Bubs Australia Ltd (ASX: BUB) is a producer of infant nutrition products, including organic grass-fed cows' milk and goat milk formulas, as well as organic baby food, nutritional supplements, and cereals. The company's products are widely available in Australia and are also exported to China, Southeast Asia, and the Middle East.

As of June 23, 2025, Bubs Australia Limited's share price was $0.16, which represented a decrease of 3.13% compared to the previous week's closing price of $0.17 per share. This price is also 8.82% below BUB's 12-month high of $0.17 per share. It is important to note that Bubs Australia does not currently pay dividends.

The share price movement of Bubs Australia has been closely monitored by investors, with insiders seeing value in the company. On hump day, Bubs Australia's share price was under selling pressure, but the specific reasons behind this were not provided in the sources provided.

Bubs Australia Limited listed on the ASX on October 5, 1993, and its share price has been publicly available since then. While there is no information on substantial shareholders, it is worth noting that no buy or sell transactions have been reported by substantial shareholders in the past 12 months, according to a 12-month transaction history compiled from ASX announcements.

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Bubs Australia's market performance

Bubs Australia Limited (ASX: BUB) is a producer of infant nutrition products, including organic baby food, goat milk infant formula, adult goat milk powder, and nutritional supplements. The company was incorporated in 1993 and is based in Dandenong South, Australia. It currently has 87 employees.

As of June 2025, Bubs Australia's share price was $0.16, with a previous close of $0.16. This represents a price movement of -3.13% when compared to the share price 7 days ago and is 8.82% below its 52-week high of $0.17 per share. The PE ratio, a popular valuation measure, for Bubs Australia is 0.04, indicating the number of years of earnings required to pay back the purchase price.

Bubs Australia's market capitalisation as of the previous close price of AU$0.12 was AU$107.06 million. The overall consensus recommendation for Bubs Australia is "Buy," and it is currently rated as "Neutral" based on an assessment of its quality, value, and momentum. The daily buy/sell signal is "Strong Buy" based on moving averages and other technical indicators.

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Bubs Australia's product range

Bubs Australia is a producer of infant nutrition products, offering a range of baby formulas, organic baby food, nutritional supplements, and cereals. The company's products are designed to cater to all stages of a child's development during their first 1,000 days of life, which is crucial to healthy brain development.

Their baby formula range includes organic grass-fed cows' milk and goat milk products. The goat milk formula is nutritionally complete for babies aged 0 to 12 months and is easier to digest, making it ideal for infants with sensitive tummies. It has also won a Clean Label Project Purity Award, as it has been independently tested for 400+ contaminants and meets the highest standards. Bubs Australia's organic baby food comes in flavours like mango, peach, and banana, and is made with whole milk sourced from high-quality, carefully selected farmers.

In addition to their infant products, Bubs Australia is also a major supplier of goat milk and goat milk powder for the adult market. The company's products are widely available in Australia, where they are sold in supermarkets and pharmacies, and are also exported internationally to China, Southeast Asia, and the Middle East.

Bubs Australia's mission is to create new generations of healthy babies and toddlers by providing clean label nutritional products that establish a foundation for a lifetime of good eating habits. Their products are trusted by parents to provide their children with essential vitamins and minerals without added sugars, GMOs, or growth hormones.

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Bubs Australia's revenue and losses

Bubs Australia Limited (ASX: BUB) is a producer of infant nutrition products, including infant formulas such as organic grass-fed cows' milk and goat milk products, as well as organic baby food, nutritional supplements, and cereals. The company also provides canning services for nutritional dairy products.

In terms of revenue and losses, Bubs Australia has demonstrated significant improvement in its financial performance. For the half-year ending on December 31, 2024, the company reported a 23% increase in total revenue to $48.5 million, with a notable turnaround from a loss to a profit of $3.55 million after tax.

Prior to this positive financial result, Bubs Australia had experienced a decline in annual revenue, with a 32.7% drop to AUD$60.1 million (US$40.7 million) in the previous year. However, the company's FY24 results showed a return to growth, with a 33% increase in total revenue to AUD$79.7 million (US$54 million). This growth was driven by a diversification strategy that reduced the company's reliance on the Chinese market, which had been adversely affected by COVID-19.

In FY24, the US became Bubs Australia's largest export market, contributing 44% of the firm's total revenue, or AUD$35 million (US$23.7 million). Revenue from the US increased by 46% compared to FY23. During the same period, revenue from China also increased by 27% to AUD$17.3 million (US$11.7 million), with improvements attributed to the company's "China reset strategy," which included partnerships with new distributors and tighter inventory management.

Bubs Australia's growth strategy includes plans to expand its geographical footprint by entering one to two new markets each year, such as Canada in the second half of FY25. The company aims to replicate its successful market entry model from Japan in other markets to drive further revenue growth.

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Bubs Australia's dividends

Bubs Australia Limited (ASX: BUB) is a producer of infant nutrition products, including organic baby food, goat milk infant formula, adult goat milk powder, and fresh dairy products. The company was incorporated in 1993 and is based in Dandenong South, Australia. Bubs Australia has a market capitalisation of AU$107.06 million and its shares last closed at AU$0.12.

Regarding dividends, Bubs Australia does not currently pay dividends to its shareholders. While the company has been making significant progress in terms of revenue and market presence, there is no information available regarding any plans to initiate dividend payments in the future.

In 2019, Bubs Australia reported a gross revenue of $21 million for the first half of the year, surpassing the total revenue of $17 million for the entire previous year. This growth was further accelerated by distribution deals with companies like Alibaba and Beingmate in China. By 2020, the company's revenue had increased to $61.7 million, reflecting a 32% growth rate year-over-year.

Despite the positive financial trajectory, Bubs Australia has not provided any indications or updates regarding dividend payments. As of now, investors should not expect to receive dividends from owning shares of Bubs Australia. However, it is important to monitor the company's financial reports and news releases for any changes in their dividend policy.

In summary, while Bubs Australia has demonstrated promising financial performance and expansion, particularly in the Chinese market, the company does not currently distribute dividends to its shareholders. Investors considering Bubs Australia as a potential investment opportunity should take into account their overall investment strategy, risk tolerance, and the potential for capital appreciation in the absence of dividend income.

Frequently asked questions

Bubs Australia is a producer of infant nutrition products, including organic baby food, goat milk infant formula, adult goat milk powder, and fresh dairy products. The company also provides canning services for nutritional dairy products.

Bubs Australia's share price has fluctuated over time, with a previous close price of AU$0.12 and a current share price of $0.16 as of 22 June 2025. The company's gross revenue for the first half of 2019 was $21 million, a significant increase from the previous year. In 2020, the company's revenue increased to $61.7 million, but it also made an EBITDA loss of $11.3 million.

Bubs Australia has distribution deals with companies in China, such as Alibaba and Beingmate, and is working to expand its presence in the Chinese market. The company has also announced plans for U.S. growth.

No, Bubs Australia does not currently pay dividends.

As of June 2025, Bubs Australia is rated as a Neutral investment opportunity. However, the daily buy/sell signal is Strong Buy, indicating that it may be a good investment option. It is recommended to do your own research and consult with a financial advisor before making any investment decisions.

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