Bubs share price: where next following US expansion announcement?

Investors respond with frenzied enthusiasm after the company announced plans to push into the North American US$5.1 billion formula market.

Bubs share price in focus

The Bubs share price (ASX: BUB) rose as much as 31% on Friday after the infant formula company announced it would be expanding into the US market.

Bubs finished out the session at 48 cents per share, up 29.33% for the session.

The $5 billion opportunity

According to the company, the US Infant Formula and Toddler Formula market is worth some USD$5.1 billion, with the majority of those sales made up of powder formulas.

With such a substantial opportunity, this move and the reaction from the market should hardly come as a surprise.

Looking at the practicabilities of this expansion, Bubs said it would first be launching two products in the US – the Aussie Bubs Australian Goat milk Toddler Formula and the Aussie Bubs Grass Fed Nutritional milk Toddler Formula.

These products are set to be launched on Walmart.com – the e-commerce platform of the $385 billion retail giant – from September 2021 onwards.

In addition to Walmart, the company noted it would be expanding its Aussie Bubs range onto Amazon’s North American site.

From a legal perspective, the company said it would establish a US subsidiary – Aussie Bubs Incorporated.

Commenting broadly on this announcement, Bubs CEO, Kristy Carr said:

'We are delighted to announce this important milestone in our continued implementation of our export diversification strategy, as we look for key global markets in which to expand our now award-winning Clean Label formulations.'

By comparison, the Bubs Executive Chairman, Dennish Lin commented:

'As Australia's largest producer of goat dairy products built on our unique vertically integrated business model and deep understanding of the specialty goat dairy supply chain, we are well placed to take advantage of continuing opportunities to expand our global footprint for the Bubs range.'

What's your view on Bubs? Whatever you think, you can use CFDs to trade both rising and falling markets, through IG’s world-class trading platform now.

For example, to buy (long) or sell (short) Bubs using CFDs, follow these easy steps:

  • Create an IG Trading Account or log in to your existing account
  • Enter ‘BUB’ in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

Alternatively, you can invest in shares directly through our share trading service.

Revisiting the Q3

Today's US expansion announcement builds on a strong period of growth from the infant formular company, with Bubs reporting solid top-line gains during the third quarter of fiscal 2021.

At the time Bubs said it had booked gross Q3 revenues of $11.8 million, implying a year-on-year growth rate of 62%, while also informing the market that the business remained well capitalised, with $36.3 million in cash reserves on its balance sheet at the time.

With infant formula stocks being roiled by daigou issues over the last year, the market will likely be keen to see Bubs maintain these growth levels when it releases its upcoming FY21 Q4/ full-year report.

With no official release date set, it should be noted that Bubs released its FY20 Q4 Activities Report on July 27, 2020.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.