Bubs Australia drops on China FY revenue cut amid subdued sales

Bubs Australia

30/06/2023 02:10

** Shares of dairy firm Bubs Australia  BUB.AX  drop as much
as 8.3% to A$0.165, their lowest since June 21 
    ** Co cuts its FY revenue for China ops to the lower end of
the previous forecast range of between A$13.5 million ($8.92
million) and A$13.8 million 
    ** Says promised online-offline sales into China under
certain distribution agreements have not materialised as per
expectations 
    ** Sees current non-cash impairment of inventory in the
range of A$20 million - A$25 million 
    ** Says ex-factor sales under Bubs exclusive China
distribution arrangements are below expectations and continue to
"disappoint" 
    ** Shares on track for their biggest intraday pct loss since
June 22 
    ** More than 2.8 mln shares change hands as compared with
the 30-day average volume of ~2.9 mln shares  
    ** Stock down 40% this year, as of last close, vs a 2.2%
increase in the benchmark S&P/ASX 200 index  .AXJO  



($1 = 1.5140 Australian dollars)

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))