• Deployment of initiatives aligned with 2030 Strategy pillars
• Acceleration of high performance culture
• Progression on USA permanent access

Bubs Australia Limited presented its 1H FY26 results, highlighting strong momentum and double-digit revenue growth. Key achievements include a 48% increase in USA revenue, positive underlying EBITDA of $4.4 million, and an upgraded FY26 outlook. The company is operating in a dynamic global environment, with macro demographic forces, regulatory and geopolitical landscape, and evolving consumer and competitive dynamics. Bubs is well-positioned with strong brand equity, diversified markets, and an attractive margin structure. The company saw strong volume and value growth in the US, with a 59% projected increase in store count. China performance was encouraging, with growth in lower-tier cities and continued scaling of O2O and CBEC channels. In Australia, Bubs is investing to re-establish growth, including increased marketing, focused activations, and improved on-shelf availability. The company also maintained a resilient performance in the Rest of World markets. Financially, Bubs reported a 14% increase in revenue, a 9% increase in gross profit, and a 3% decrease in operating expenses, leading to a significant uplift in underlying earnings. The company has a disciplined approach to working capital management, with inventory balances increasing to fund growing demand. Bubs has provided FY26 guidance, including revenue of $120-$125 million, gross profit margin of 40-45%, and EBITDA of $9-$11 million.

Revenue of $120-$125 million, reflecting 22-27% growth on prior year; Gross profit margin of 40-45%; EBITDA of $9-$11 million.

Bubs is deploying its 2030 strategy, focusing on performance culture, digital marketing, innovation, operational excellence, and environmental initiatives. Key focus areas include building consumer intimacy, portfolio optimization, and supply chain enhancements.