BUB - BUBS Australia

[Ann]

Bubs Australia secures strong distribution foothold with Chemist Warehouse alliance
Infant formula producer Bubs Australia (ASX: BUB) has bolstered its local distribution foothold after entering into a four-year strategic alliance with the Chemist Warehouse Retail Group.

Under the binding heads of agreement, Bubs products will be sold across Chemist Warehouse retail stores throughout Australia from 1 June 2019, including its domestic and Tmall online stores.

Chemist Warehouse has been stocking limited ranges of Bubs products online for some time, with the success of the online store prompting the pair to enter into discussions to expand the distribution of all Chemist Warehouse franchised stores.

Commenting on the strategic alliance, Bubs Australia founder and chief executive officer Kristy Carr said it was a remarkable opportunity for the company to deepen its relationship with Australia’s leading health and beauty retailer.

“We firmly believe this transaction will deliver strong growth in Bubs’ business, as well as offer significant long-term shareholder value,” she said.

“Now, with our key partners in place and a fully vertically integrated business with milk pool security and ownership of our manufacturing facility, we are set for rapid global expansion.”

Chemist Warehouse is Australia’s largest pharmacy chain network by total sales, with over 450 franchised stores throughout Australia and New Zealand.

Recently, the chain has evolved its business model to not only cater for a strong domestic market, but also act as a gateway to China for Australian brands in response to the increasing number of Chinese residents and tourists seeking Australian health and infant nutrition products. More...

 

[$20shoes]

A series of measuring gaps is setting the tone for a very bullish chart. Today's bar marks quite an extreme away from a "mean" channel (not shown on chart), but nonetheless BUBS close on its high, with some very strong trading interest today.

 

[Ann]

Up 11.32% closing at $1.48

Bubs partners with Fonterra to make Australia’s first organic grass-fed infant formula



Quick on the heels of announcing growth revenue figures in excess of $11 million, Bubs Australia (ASX: BUB) has confirmed the company will be the first to produce Australian-made organic grass-fed infant formula.


The infant formula producer said that it has entered into a long-term supply and manufacturing agreement with Fonterra Australia to produce its news formula range called Bubs Organic.


The deal represents a significant coup of Bubs given that Fonterra Australia is a multinational dairy co-operative owned by around 10,500 New Zealand farmers and is currently New Zealand’s largest company by revenue.


The company is responsible for approximately 30% of the world’s dairy exports and generated annual revenues in the region of NZ$17 billion (A$16 billion) per year.


The supply agreement is conditional and will initially run until 31 July 2021. According to the terms of the deal, Fonterra will supply Bubs with organic milk powder, sourced from its organic milk pool in New Zealand, which will be manufactured at its facility in Darnum, Victoria.


In recent months, Bubs has established itself as a key player in the goat dairy infant formula sector in Australia and made significant inroads into China. More...

 

[bigdog]

Motley reported
https://www.fool.com.au/2019/06/28/bubs-share-price-soars-32-on-china-deal-announcement/

A2 and Bellamy’s share prices rise on Bubs China announcement
Lina Lim | June 28, 2019

Baby formula stocks are beginning to turn a new leaf after underperforming on the ASX 200 in June.

This follows the announcement that China’s government was planning new rules for the regulation of baby formula imports. According to the Australian Financial Review, the main objective of the plan was to benefit Chinese baby formula producers.

On Thursday, local baby formula stocks experienced a lift in share price following an announcement out of Bubs Australia (ASX: BUB). This announcement saw the Bubs Australia share price lift 32%, with the Bellamy’s Organic Australia (ASX: BAL) and A2 Milk Company Ltd (ASX: A2M) share prices also rising 5% and 2%, respectively.

What did Bubs announce yesterday?
Bubs announced a strategic channel partnership with China’s leading baby store Kidswant as the first major project of the Bubs/Beingmate Joint Venture, which was established in May 2019.

This first major project kicks off with Bubs Organic food products being stocked across 275 Kidswant stores in key shopping areas in 123 cities throughout China.

This is a high-quality deal for the company that allows it to leverage Kidswant’s immense Chinese network. Kidswant has the largest market share of mother and baby retail in China, as well as an active membership community of over 27 million mothers.

Bubs expects retail sales to be approximately $6 million in the first year, which is a significant figure considering the company announced HY19 gross sales of $21.03 million.

 

[Dona Ferentes]

another to see escrow periods lifted include $38.4m worth of shares in dairy interest Bubs that were issued in relation to the company’s $39m acquisition of Nulac Foods in 2017. The escrow restrictions on the Nulac shares were lifted on 20 December.

 

[bigdog]

After a six month-long purple patch in which the Bubs share price soared over 300% to a new all-time high of $1.615, the organic baby foods manufacturer has under performed for most of the second half of 2019.

Bubs recently launched into Vietnam and signed a distribution agreement for a new premium adult goat dairy brand called Deloraine with Chinese ecommerce giant Alibaba.

Capital raisings from institutional and retail investors at a price of $0.95 per share have so far diluted the Bubs share price.

Looking good with cash in the bank and potential new revenue streams from Asian markets in 2020

 

[Logique]

Nice double digit jump today, on announcement of a supply deal with Woolworths

 

[Chronos-Plutus]

I just bought some BUB today. The next A2M some are saying.

 

[Rustyteeth]

I just bought some BUB today. The next A2M some are saying.

I have been watching BUBS for some months now, it is definitely undervalued in my opinion, and with new contracts with some major retailers, I would expect to see it perform well between now and Christmas. I do not think we will see 300% growth or anything that spectacular, but I would expect between a comfortable 30 to 50%. I already have plenty of A2M so this is my second foray on the Dairy Industry shares. I bought some last week, I will buy some more tomorrow.

 

[frugal.rock]

Announcement this morning.
BUBS EMBARKS ON PIVOTAL BREAKTHROUGH MANUFACTURING ARRANGEMENT TO SUPPORT OBTAINING SAMR REGISTRATION FOR BUBSÒ GOAT INFANT FORMULA IN CHINA
• Bubs and Joint Venture partner Beingmate enter a Memorandum of Understanding to manufacture
Bubs® China label Goat Infant Formula locally in China, made from 100% Bubs Australian Goat Milk,
at one of Beingmate’s registered facilities.
• Bubs intends to acquire an ownership interest in Beingmate's facility located in Beihai China, and
secure exclusive use of a SAMR approved brand slot.
• Beingmate owns five CNCA certified manufacturing facilities and has the largest Infant Formula
portfolio in China, including 51 registered products across 17 brands.
• Bubs to retain full ownership of Bubs® brand intellectual property and the proprietary Bubs® China
formulations, specifically formulated for Chinese babies, targeting lower-tier cities.
• Secures a faster, more certain route-to-market and full access to China’s General Trade Channel,
including Beingmate’s existing distribution network across 30,000 Mother and Baby stores.
• Bubs to continue progressing SAMR registration for an Australian made ‘super-premium’ product to
be produced at its Deloraine facility, which will be aimed at tier-one cities.
• Bubs intends to replicate this ‘Created by Bubs®’ localisation strategy in other jurisdictions to
accelerate global expansion into sizeable markets with similar regulatory (or other) requirements.

Have been expecting a break for bubs. SP has been languishing, hopefully this is the catalyst to change the trend.

 

[Rustyteeth]

It will do a bull run before Christmas, absolutely. Today was a good day, but the best is yet to come. It is impossible for a company like this to keep languishing, I suspect it is not in favour due to the Chinese ownership partners. But that is only for fools and horses, all indications are good, so when it does go up, it will make a run for it.

 

[Beaches]

Melbourne, 22 September 2020: Bubs Australia Limited (ASX: BUB) (the Company) refers to its Share Purchase Plan which was announced to the market on 3 September 2020 (SPP). The Company wishes to advise that, due to delays being experienced with Australia Post deliveries during COVID-19 and feedback received from shareholders, the closing date for the SPP will be extended by a period of two weeks from Wednesday, 23 September 2020 until Wednesday, 7 October 2020, 5.00pm (Sydney time).​

​

Once again Australia Post being blamed for the extension of the SPP. Is it just a coincidence that it is only the companies with a share price that has dropped below the offer price that are experiencing these mail delays?

 

[frugal.rock]

Just noticed it seems to have finally found the bottom... took awhile.

 

[rnr]

Just noticed it seems to have finally found the bottom... took awhile.

The next hurdle is to close the gap created in late August.....maybe a short rest is in order before achieving that goal.

Cheers, Rob

 

[aus_trader]

The next hurdle is to close the gap created in late August.....maybe a short rest is in order before achieving that goal.

Cheers, Rob

Yes I also think too early to call a bottom

 

[frugal.rock]

The SPP closed at 5.00pm (Sydney time) on 7 October 2020 having received 492 applications for amounts in excess of A$3.8 million. The SPP was offered to existing eligible Bubs shareholders with registered addresses in Australia or New Zealand as at 7.00pm (Sydney time) on 2 September 2020 at A$0.80 per share.
4,751,775 shares, which will rank equally with existing Bubs shares, are expected to be issued to those eligible Bubs shareholders who participated in the SPP on 14 October 2020.

Yes I also think too early to call a bottom

Well, guess what, I already did.... the fingers are smelly.
Egg on my face if I'm wrong....mmmm eggs.

 

[aus_trader]

The SPP closed at 5.00pm (Sydney time) on 7 October 2020 having received 492 applications for amounts in excess of A$3.8 million. The SPP was offered to existing eligible Bubs shareholders with registered addresses in Australia or New Zealand as at 7.00pm (Sydney time) on 2 September 2020 at A$0.80 per share.
4,751,775 shares, which will rank equally with existing Bubs shares, are expected to be issued to those eligible Bubs shareholders who participated in the SPP on 14 October 2020.


Well, guess what, I already did.... the fingers are smelly.
Egg on my face if I'm wrong....mmmm eggs.

Hey, don't feel bad. It's really tricky with capital raisings nowadays. I highlight that because once upon a time I actually used capital raisings as a strategy to make money. Not huge sums of it, but it had a positive edge, so was good for generating cashflow.

I find that edge has eroded away over time and nowadays if you buy into every capital raising, I think the overall edge would be -ve .

Selective participation could still work, but it's not easy with a lot of smaller companies pumping the price up before the cap raise, which usually means there's only one way for the price to go after the raise

 

[frugal.rock]

Hey, don't feel bad. It's really tricky with capital raisings nowadays.

I don't feel bad either way. Don't hold so if I get egg on my face, I will just wipe it off with bacon.....
Mmmmm bacon and eggs....

 

[xen88]

Is China still doing business with BUB? I thought I read somewhere that BUB is no longer doing business with China

 

[frugal.rock]

Just noticed it seems to have finally found the bottom... took awhile.

Echo.
Going up against the market generally, so maybe this time....
Either way, this time I bought me some.... last time I didnt.
Babies still have to drink, and I'm not sure boob feeding is coming back into fashion any time soon...