What was announced in the Bubs Australia (ASX:BUB) FY26 trading update?

Bubs Australia released its unaudited FY26 trading update, showing resilient underlying growth despite facing severe international supply chain and regulatory headwinds.

What is the expected FY26 revenue for Bubs Australia (ASX:BUB)?

Bubs Australia expects its full-year FY26 revenue to land between $105 million and $115 million. The company stated that this revenue range demonstrates underlying growth, even though sales numbers were heavily impacted by external market disruptions and competitive pressures.

Is Bubs Australia (ASX:BUB) profitable based on its FY26 guidance?

Bubs Australia's profitability remains mixed due to high short-term costs, with reported EBITDA projected to sit between -$2 million and +$2 million. However, its underlying EBITDA is forecast to be positive, reaching approximately $4 million to $8 million for the full year.

What external factors impacted Bubs Australia’s (ASX:BUB) earnings?

Bubs Australia’s sales and earnings were dragged down by complex global challenges, including evolving regulatory requirements and product availability constraints.

Why did air freight costs affect Bubs Australia’s (ASX:BUB) margins?

Bubs Australia increased its expenditure on air freight to support rapid product restocking, particularly to service its growing US market. While this allowed the company to maintain high customer service levels and move quickly, it acted as a short-term drag on profit margins.

How is Bubs Australia (ASX:BUB) performing in the United States market?

The United States remains Bubs Australia's strongest growth market and a central piece of its long-term corporate strategy. The company is on track to achieve product ranging in over 10,000 American retail stores by July 2026, driven by robust underlying demand.

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Bubs Australia navigates headwinds with US growth

Written by Jon CuthbertPublished May. 29 2026Last Updated May. 29 2026

Bubs Australia (ASX:BUB) has released its unaudited FY26 trading update, detailing a resilient performance amidst international headwinds.

The infant formula manufacturer expects full-year revenue to land between $105 million and $115 million.

Reported EBITDA is projected to sit between -$2 million and +$2 million, whilst underlying EBITDA is forecast to reach approximately $4 million to $8 million.

The company noted that sales and earnings were heavily impacted by complex external factors, including evolving regulatory requirements, product availability constraints, competitive pressures, and geopolitical disruption in the Middle East.

Increased expenditure on air freight to support rapid restocking also weighed on short-term margins.

Despite these challenges, Bubs continues to experience robust underlying growth, driven primarily by expansion in the United States, which remains its strongest growth market.

Engagement with the US FDA is progressing positively through its final stages, and the company remains on track to achieve ranging in over 10,000 American stores by July.

Bubs’ CEO and Managing Director, Joe Coote, stated that the business has taken a careful, disciplined approach to managing its supply chain in an increasingly volatile environment.

Whilst navigating these conditions has incurred short-term costs, Coote emphasised that the strategy has positioned the business to meet its long-term sustainable growth ambitions.