Bubs Australia has appointed its second CEO in almost two years, naming former Fonterra executive Joe Coote to head up the infant-formula maker.
Coote takes up the role with immediate effect, Bubs said in a stock exchange filing today (28 July).
Reg Weine, who became CEO in August 2023, is leaving the company. Weine had replaced interim chief Richard Paine, who stepped in to fill the role when founder and former chief executive Kristy Carr was axed in May of that year.
Coote brings over 20 years of leadership experience in the FMCG sector, including dairy and infant nutrition. Most recently, he was CEO of Darigold, the fourth-largest dairy cooperative in the US, overseeing more than $2bn in global sales, according to the filing.
Prior to that, he spent 12 years at Asia-Pacific dairy giant Fonterra, including president of the US division.
Bubs' chair Katrina Rathie said: "We are confident Joe will execute Bubs’ domestic and international growth ambitions with discipline and agility to create sustainable value for our shareholders.
"His proven track record in driving operational excellence and leading large-scale transformations across international markets will be instrumental in expanding our premium clean-label goat and grass-fed dairy product portfolio across key export destinations, including the USA, China and other Asian markets."
Coote will be paid an annual salary of A$750,000 ($489,452m), according to the filing.
The incoming CEO said: “After 15 years abroad building global brands, it’s a privilege to return home and channel my experience into leading an Australian brand that’s redefining premium infant nutrition.
"I’m excited to lead the Bubs’ team to build a world-class infant-nutrition brand that delivers exceptional outcomes for our shareholders and families the world over.”
Bubs also issued its unaudited financial results today for the 2025 fiscal year.
Established in 2006, the company produces the brands A2 Beta-Casein Protein, Organic Grass-fed, and Easy-Digest Goat Milk Infant Formula, as well as an organic baby food range.
Revenue rose 29% to A$102.5m. However, its gross profit margin dropped by 140 basis points to 47.2%.
In the US, described as the company’s “best-performing market”, Bubs registered 52% revenue growth, generating A$53m by leveraging the “growing premium IMF segment”.
In China, net revenue grew by 22%, reflecting “strong” cross-border e-commerce sales of goat and supreme formulas.
In Australia, net revenue rose by 8%, while the rest of the world markets, including Vietnam and Japan, saw a 44% increase.
The company projects a full-year EBITDA of A$5.5m to A$6m, a turnaround from the previous year’s A$19.8m loss.
