Highlights

  • Bubs Australia (ASX:BUB) delivered FY26 Revenue growth of 9.2% to $111.9 million, supported by continued US expansion.
  • Underlying EBITDA improved to $5.3 million as the company strengthened its Earnings base.
  • US revenue increased 24% as distribution expanded across more than 10,000 stores.
  • Bubs is focused on FDA approval progress, Brand Investment and further international growth opportunities.

Bubs Australia (ASX:BUB) has continued building its global infant nutrition platform after delivering revenue growth and improved underlying earnings during FY26.

The company’s full-year results, released on 27 August 2026, highlighted progress across its US expansion strategy, improved operational execution and increased investment in brand development. While the Business faced Supply chain pressures, regulatory changes and higher costs during the year, management believes the foundations are strengthening for future growth.

FY26 Performance

Bubs reported FY26 revenue of $111.9 million, representing growth of 9.2% compared with $102.5 million in FY25.

Underlying EBITDA improved significantly to $5.3 million, compared with $1.2 million in the previous year, reflecting stronger underlying earnings performance.

The company reported a statutory EBITDA loss of $1.8 million, impacted by temporary airfreight costs, regulatory reset expenses and non-Australian tariff-related costs.

Gross profit declined to $44.5 million, with gross Margin reducing to 39.8% from 47.8% due to increased supply chain costs and regulatory-related impacts, particularly during the second half.

Bubs completed its inventory restocking program during FY26, with Working Capital positioned to support future growth.

The company ended the period with cash of $9.4 million and $10.0 million in undrawn Debt facilities, maintaining Liquidity flexibility.

US Growth Strategy

The United States remained the strongest growth market for Bubs during FY26.

US revenue increased 24% to $65.8 million, compared with $53.1 million in FY25.

Growth was supported by continued Demand for premium goat milk infant formula products, expanded retail distribution and improved product availability.

Bubs expanded distribution across more than 10,000 stores in targeted retail formats, strengthening its presence in the US infant nutrition market.

The company continues progressing its FDA approval pathway, which remains a key strategic priority for further expansion in the US market.

Successful completion of this process would support Bubs’ long-term ambitions in one of its most important growth regions.

Regional Performance

Bubs experienced mixed performance across its global markets during FY26.

China revenue remained stable at $21.4 million, with stronger consumer demand offset by inventory adjustments and regulatory changes affecting customs clearance and testing requirements.

Australian revenue declined 7% to $18.3 million due to competitive pressures, temporary supply constraints and brand repositioning challenges.

The company responded by increasing brand activation and Marketing initiatives during the second half to rebuild momentum in the domestic market.

Rest of World revenue declined 25% to $6.4 million, impacted by regulatory changes that affected product availability and extended customs processing timelines.

Brand and Operational Investment

During FY26, Bubs increased investment in brand development, inventory availability and operational capabilities.

The company rebuilt inventory levels to support improved product supply and customer availability.

Marketing investment increased as Bubs focused on strengthening brand visibility across key markets.

Management has also continued strengthening its Leadership capabilities to support future expansion.

The company believes these investments provide a stronger platform to capture future demand as supply conditions normalise.

Growth Drivers

Bubs’ future growth strategy is centred around continued US expansion, product innovation and international market development.

The premium goat milk segment remains a key opportunity, supported by consumer demand for specialised infant nutrition products.

The company is also focused on expanding distribution channels, increasing Brand Awareness and improving customer access.

FDA approval remains an important potential catalyst for the US business, supporting broader market opportunities.

China and other international markets also provide additional growth potential as regulatory conditions stabilise and product availability improves.

Outlook

Bubs expects improved momentum during the first half of FY27 as the company adapts to changing regulatory and Tariff environments.

The company expects continued growth in the US market, supported by distribution expansion and consumer demand.

China growth is expected to benefit from expanded distribution and marketing initiatives, while Australia remains focused on recovery through renewed brand investment.

Rest of World performance is expected to remain mixed as product flows continue improving.

Management expects gross margins to recover as temporary cost pressures reduce and working capital supports future growth.

Key Focus Areas

Investors will continue monitoring progress towards FDA approval and the impact it could have on US growth opportunities.

The ability to maintain US revenue momentum while improving margins will remain a key measure of execution.

Recovery across Australia and international markets will also provide insight into the strength of the broader brand portfolio.

Working capital management, supply chain efficiency and cost control will remain important as Bubs scales operations.

Risks

Bubs operates in competitive infant nutrition markets where brand strength, regulatory compliance and supply reliability are critical.

Changes in regulatory requirements, tariffs and International Trade conditions may continue affecting costs and product availability.

The company’s growth strategy relies heavily on expanding in the US market, making successful execution of distribution and regulatory initiatives important.

Consumer preferences, competitive pressure and changing market conditions may also influence future performance.

Maintaining liquidity while investing in growth initiatives remains another important consideration.

Future Outlook

Bubs Australia enters FY27 with stronger US momentum, improved underlying earnings and a broader global distribution footprint.

The FY26 result demonstrates progress in building a more scalable infant nutrition business, although margin recovery and regulatory execution remain key priorities.

The company’s ability to convert US expansion, FDA progress and brand investment into sustainable profitability will determine the next phase of growth.

With a strengthened operating foundation and continued focus on premium infant nutrition markets, Bubs is positioned to pursue further expansion opportunities.