Key Highlights

  • Bubs Australia Ltd (ASX:BUB) are trading at $0.105, up 12.90% on the day.
  • The company's FY26 Appendix 4E showed group Revenue of $111.9 million, a 9.2% increase from $102.5 million in FY25, driven largely by US sales.
  • Reported EBITDA moved to a $1.8 million loss for FY26, compared with a $5.2 million profit in FY25, reflecting airfreight, regulatory and tariff-related costs.
  • US revenue rose 24% to $65.8 million and now represents around 59% of group revenue, while Australian and Rest of World sales both declined during the year.

Bubs Australia Ltd (ASX:BUB) are trading at $0.105 per share, up 12.90% on the day, as the infant nutrition company's most recent full-year results filing continues to draw investor attention. The Sydney-based goat and cow milk formula maker released its FY26 Appendix 4E and Preliminary Annual Report, along with an accompanying results presentation, to the Australian Securities Exchange, providing a detailed account of its financial performance for the twelve months to 30 June 2026.

FY26 Financial Snapshot

According to the company's results announcement, group revenue for FY26 reached $111.9 million, up 9.2% from $102.5 million in the prior corresponding period. Underlying EBITDA improved to $5.3 million from $1.2 million a year earlier, a measure that excludes a series of one-off cost items. On a reported basis, however, EBITDA swung to a $1.8 million loss for the year, compared with a $5.2 million profit in FY25. The company attributed the gap between underlying and reported Earnings to $3 million in temporary airfreight costs, $3.9 million associated with a regulatory reset, and $1 million in Tariff costs tied to non-Australian markets. Gross Profit for the year declined 9.4% to $44.5 million, with gross Margin narrowing to 39.8% from 47.8% in FY25.

US Expansion Drives Regional Divergence

The United States was the primary growth engine for Bubs during FY26, with revenue from the region increasing 24% to $65.8 million from $53.1 million in FY25. The US now accounts for close to 59% of group revenue, with the company citing Demand in the premium goat milk formula segment, expanded distribution to more than 10,000 stores across targeted retail formats, and a focus on maintaining continuity of supply. China revenue was broadly unchanged at $21.4 million, as increased consumer demand was offset by inventory Rebalancing and regulatory changes affecting customs clearance and testing. Domestic Australian revenue fell 7% to $18.3 million from $19.8 million, which the company linked to competitive pressures, temporary Supply constraints and Brand repositioning challenges, prompting increased brand activation in the second half. Rest of World revenue declined 25% to $6.4 million, with trading paused in Vietnam and Singapore during the second half while the company worked to meet new regulatory requirements in those markets.

Costs, Working Capital and Balance Sheet

Operating expenses for the year rose 5% to $48.8 million, which the company attributed to increased Marketing expenditure. Net working capital increased by $12.3 million to $35.5 million as Bubs rebuilt inventory levels to support supply continuity and growth plans. The company said its inventory restocking program is now complete, with the net working capital-to-sales ratio normalising to 31.7%.

Leadership Commentary and Outlook

Bubs Australia CEO Joe Coote said FY26 marked progress against the company's growth strategy, noting that revenue growth was achieved despite a difficult operating environment that included shifting tariff policies, geopolitical disruption and evolving regulatory requirements that added to supply chain costs and affected product availability, particularly in the second half of the year. For the first half of FY27, the company said it expects revenue growth to continue, though regional performance is expected to remain mixed. Bubs also confirmed that its US Food and Drug Administration approval process remains on track and continues to be viewed as central to its longer-term growth plans in that market.

Conclusion

Bubs Australia's FY26 results point to a Business in transition, with US demand and distribution gains offsetting softer conditions in Australia and other international markets. The divergence between underlying and reported earnings reflects a series of cost items the company has flagged as temporary, including airfreight, regulatory and tariff-related expenses, while inventory levels have been rebuilt to support ongoing supply. Management's commentary points to continued but uneven regional performance heading into FY27, with the FDA approval process remaining a key item to watch as the company continues to build out its US footprint.