Bubs Australia (ASX:BUB) has experienced a remarkable turnaround in its financial performance, with a recent US market update revealing impressive revenue growth driven by a resilient US consumer base. The news has sent the company’s share price soaring by over 40% since the beginning of March, marking a significant shift from years of underperformance.
The company’s revamped board has successfully addressed previous issues that were weighing down the share price, leading to a new global approach that has unlocked shareholder value. With a focus on the US market, Bubs has seen quarter on quarter growth of 8.3%, with US sales accounting for more than 50% of revenue for the quarter.
While the company has faced challenges in China, particularly with a corporate daigou partnership, the shift towards the US market has proven to be a strategic move. The US consumer base has remained strong despite economic uncertainties, providing Bubs with a higher degree of operational safety and growth potential.
The recent rally in Bubs’ share price reflects market confidence in the company’s ability to capitalize on the demand for high-quality Australian infant products in the US market. With a wide range of premium infant and toddler products, Bubs is well-positioned to benefit from the current inflationary environment and consumer trends favoring non-discretionary goods.
Despite past financial missteps and capital raises, Bubs’ successful pivot towards the US market and discounted share price make it a stock to watch in 2024. With long-term growth prospects in the world’s largest economy and a pathway for FDA permanent access, Bubs is poised for continued success in the coming years.