• Net profit after tax of $3.6m, up from $7.7m loss in pcp
• EBITDA of $0.5m, up from $7.0m loss in pcp
• Group revenue of $48.5m, up 23% on pcp

Bubs Australia Limited (ASX:BUB) has reported its audited financial results for the six months ending 31 December 2024 (1HY25). The company achieved a net profit after tax of $3.6m, up from a net loss of $7.7m in the prior corresponding period (1HY24). EBITDA was $0.5m, up from a $7.0m loss in the prior corresponding period. Group revenue grew 23% to $48.5m, driven by strong growth in the USA market where revenue increased 28% to $23.2m. The company's gross margin improved to 50% from 49% in the prior corresponding period, reflecting its premium brand positioning, improved inventory management, higher margin new pack formats in the US, lower ingredient & packaging costs and favourable currency movements. Bubs reaffirmed its FY25 outlook guidance of $102m revenue and EBITDA breakeven before share-based payments expense, with the forecast gross margin upgraded from 40% to 45%. The company also reported positive operating cash flow of $3.9m in Q2 FY25 and held $17.2m in cash reserves as at 31 December 2024, with an additional $5.0m of unused headroom on its bank facilities.

Bubs reaffirms FY25 outlook guidance of $102m revenue and EBITDA breakeven before share-based payments expense, with forecast gross margin upgraded from 40% to 45%.

Bubs expects a steady improvement in its US sales over the next few months as the product and pack changes are fully implemented. The company expects its FY25 gross profit to be approximately 45%, supporting its full year EBITDA delivery, and continued improvement in working capital and cash flow. Bubs is also expecting to announce positive developments for its Rest of World business in the coming months.