Bubs performance in the China market also improved after a challenging 2023, particularly in its adult powder product, which was up 82 per cent on FY23 to $10.1 million. Gross revenue in China had a strong 2H24 at $11 million, up from $8 million in the first half.
“Our new look labels have also been recently launched in China. Now that the stock overhang from Bubs Supreme has been cleared in the marketplace, and our premium pricing architecture restored, we believe our new product offering and new go-to-market channels will deliver sustainable year on year growth in China,” Weine said.
Low margin SKUs were rationalised during the year and its new look labels and pack formats are expected to deliver improved velocity and profit margins.
Weine also said the company’s Deloraine canning facility was running at 85 per cent utilisation on a two shift, five day a week schedule, with “significant” capacity for growth. That’s an uptick from this time last year when it was running at around 31 per cent capacity.
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