Bubs suffers loss as daigou sales falter
THE collapse of the Chinese daigou market has claimed another victim, with goat milk-focused infant formula producer Bubs almost doubling its half-year loss.
COVID-19 has continued to expose many Australian companies’ reliance on daigous – students, tourists and small corporate groups in Australia running their own China export businesses.
Pandemic border closures, and the preference of many
Chinese consumers for homegrown products, has badly affected the practice.
Bubs dived 71 per cent deeper into the red, reporting a $12.9m loss in the half year to December 31. Revenue fell 33 per cent to $18.3m.
CEO Kristy Carr (inset) said Bubs goat formula’s total direct sales to China recorded a 36 per cent uplift in gross revenue. “The increase was not sufficient to outweigh the 57 per cent decline in gross revenue from the daigou channel,” she said.