Small-Cap

Technical Analysis on One ASX-Listed Stock – BUB

March 19, 2025 | Team Kalkine
Technical Analysis on One ASX-Listed Stock – BUB
Image source: shutterstock

BUB:ASX
Investment Type
Small-Cap
Risk Level
Action
Rec. Price (AU$)

Company Overview: Bubs Australia Limited (ASX: BUB) is an Australia-based company engaged in providing a range of organic baby food, goat milk infant formula products, adult goat milk powder products and fresh dairy products. It also provides canning services for nutritional dairy products. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on this stock.

Results Update: In 1HFY25, the company reported a remarkable turnaround, posting a net profit after tax of AUD 3.6mn, a significant improvement from the net loss of AUD 7.7mn in 1HY24. EBITDA also showed positive growth, reaching AUD 0.5mn in 1HFY25, reversing the previous year's loss of AUD 7.0mn. Revenue increased by 23% year-on-year, totaling AUD 48.5mn for the period. Operating cash flow saw substantial improvement, with net cash being used reduced to AUD 0.5mn in 1HFY25, compared to AUD 12.2mn in the same period last year. The gross margin slightly improved to 50%, up from 49% in the prior year.

 Outlook: The company has reiterated its FY25 outlook, projecting AUD 102mn in revenue and EBITDA breakeven, along with an upgraded gross margin forecast of 45%. Furthermore, the Growth Monitoring Study achieved full patient enrolment by December 2024, and an FDA decision on permanent access is expected by October 2025.

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