Bubs Australia booked a 9.8 per cent drop in quarterly net revenue to $23.1 million for the three months to September 30, hit by currency swings and stalled export markets across Asia.

The Victoria-based infant formula producer burned through $6.0 million in operating cash during the period, leaving it with $13.4 million in available liquidity to fund inventory and marketing.

Revenue in the United States, Bubs’ largest regional market, dropped 8.9 per cent to $15.3 million. Management blamed foreign currency translation for the headline decline, which masked diverging retail channels across North America.

Brick-and-mortar scan sales held up across major retailers. Sales through Walmart and Target grew strongly as distribution widened to more than 12,000 stores across all 50 states, but lower sales volumes on Amazon blunted those physical retail gains.

Trading beyond the Pacific showed acute regional friction. Revenue from the Rest of the World division plunged 36 per cent to $1.2 million as planned market re-entries into Singapore and Vietnam ran into operational delays.

China provided a modest buffer. Revenue from mainland buyers crept up to $2.6 million, giving the company small volume gains in an import market where rival dairy labels have written down excess inventory.

Bubs gained permanent US Food and Drug Administration authorisation in September for three infant formula lines. That clears regulatory uncertainty that lingered after emergency pandemic-era supply waivers expired, giving the business a permanent footing against incumbent American brands.

Yet chasing US market share carries clear capital risks for Asia-Pacific consumer operators.

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