Infant formula maker Bubs Australia has reported its first annual profit, largely driven by its US operations.

The company recorded a statutory after-tax profit of A$5.5m ($3.6m) for the year ended 30 June, as disclosed in a stock exchange filing today (29 August).

The result marked a turnaround from a loss of A$21m in the previous year.

Underlying EBITDA reached A$600,000 in the year, as against a loss of A$20.3m in FY24.

Bubs Australia generated group net revenue of A$102.5m in FY25, up 29% year-on-year.

The US, described as the company’s “best performing market”, contributed A$53.1m to revenues.

Bubs Australia said its US sales rose 52%, driven by growth in the "premium" and goat infant-milk formula segments.

Revenue grew by 22% to A$21.1m in China, supported by “strong” cross-border e-commerce sales of Adult Goat and Supreme IMF products and expansion into 1,315 stores through the online-to-offline channel.

In Bubs Australia's "rest of the world" markets, net revenue rose to A$8.5m, a 44% year-on-year increase. The growth was attributed to “strong” performances in Japan and Vietnam.

However, revenues declined domestically to A$19.8m.

The group’s net operating cash inflow in FY25 was A$6.1m, compared to a cash outflow of A$26.3m in the prior year.

Joe Coote, who became Bubs Australia CEO in July, stated, “We continue to build strong momentum in the USA as well as our other core markets. Pleasingly, we achieved net revenue of $102.5m during the year in line with our revenue guidance.”

Coote, a former Fonterra executive, is the second CEO for Bubs in almost two years, succeeding Reg Weine.

In August 2023, Weine had replaced interim chief Richard Paine, who stepped in to fill the role when founder and former CEO Kristy Carr left in May of that year.

Established in 2006, Bubs Australia produces infant formula and an organic baby food range.

Its products are available in supermarkets and pharmacies across Australia and exported to China, South East Asia, the Middle East and the US.