Brief: Bubs Australia Announces China Update

Bubs Australia

30/06/2023 01:33

June 30 (Reuters) - Bubs Australia Ltd  BUB.AX :
    * BUBS CHINA UPDATE
    * BUBS CHINA NET REVENUE FOR FULL YEAR IS EXPECTED TO BE AT
LOWER
END OF PREVIOUS FORECAST RANGE OF BETWEEN A$13.5M - A$13.8M
    * EX-FACTORY SALES UNDER BUBS EXCLUSIVE CHINA DISTRIBUTION
ARRANGEMENTS ARE BELOW EXPECTATIONS AND CONTINUE TO DISAPPOINT
    * EXCLUSIVE DISTRIBUTOR PARTNERSHIP WITH AZ GLOBAL, WILLIS
AND
ALICE HAS FAILED TO DELIVER AGAINST EXPECTATIONS
    * BUBS AUSTRALIA CONTINUES TO PURSUE OUTSTANDING DEBT OF
A$5.65M
    * PROMISED ONLINE-TO-OFFLINE SALES INTO CHINA HAVE NOT
MATERIALISED UNDER PARTNERSHIP WITH AZ GLOBAL, WILLIS AND ALICE
    * NOW HOLDS SIGNIFICANT AMOUNTS OF BULK RAW MATERIAL THAT
WAS
PURCHASED TO MEET ITS SUPPLY OBLIGATIONS UNDER AGREEMENT WITH
ALICE
    * CURRENT ANTICIPATED NON- CASH IMPAIRMENT OF INVENTORY IS
IN
RANGE OF A$20M - A$25M
    * BUBS AUSTRALIA WILL NOW EMBARK ON REFRESHED STRATEGIC
DIRECTION
IN CHINA UNDER ITS NEW CHINA LEADERSHIP

Source text for Eikon:  ID:nASX7ryZcv 
Further company coverage:  BUB.AX 

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