(Bloomberg) -- Shares of Bubs Australia Ltd. surged after it announced record fourth-quarter sales, as the company ships infant formula to the US to help the country meet a severe shortage of the product. Most Read from Bloomberg These Are the World’s Most (and Least) Powerful Passports in 2022 Kissinger Warns Biden Against Endless Confrontation With China China Disputes Report Xi Invited Europe Heads to Beijing Meeting The company said it delivered 540,000 tins of the infant food to the US between May and July, funded by the government’s Operation Fly Formula. Bubs will remain on US shelves beyond November and the company expects the nation to become a “lead export market opportunity on par with China in the future,” said Kristy Carr, founder and chief executive officer. “We are confident of the long-term growth prospects for the USA.” The stock rose as much as 9.4% in Sydney on Wednesday, after the company posted record fourth quarter gross revenue of A$48.1 million ($33.3 million), up 278% year on year, according to a market update. It is the fourth consecutive quarter of growth on prior year, with shares up around 23% in 2022. Bubs shares surged as much as 77% on May 30, after the Food and Drug Administration said the company would provide the US with at least 1.25 million cans of formula. Read more: Biden Tweet Adds Boost to Australian Formula Maker’s 77% Surge New Zealand formula maker A2 Milk Co. also benefited from Wednesday’s news, jumping as much as 4.2% in Sydney trading. Most Read from Bloomberg Businessweek Postmortem Sperm Retrieval Is Turning Dead Men Into Fathers Sam Bankman-Fried Turns $2 Trillion Crypto Rout Into Buying Opportunity Brain-Computer Interface Startup Implants First Device in US Patient Mortgage Boycott Shows How Deep China’s Property Crisis Goes The US Is Exporting Inflation, and Fed Hikes Will Make It Worse ©2022 Bloomberg L.P.
Australia Infant Formula Maker Surges on Record Sales After US Deal
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