Coronavirus restrictions smashed Chinese daigou sales in the quarter, sending total revenue down 5 per cent to $13 million.
The daigou sales channel is where Chinese tourists buy Australian goods to sell in China at a profit, but this category was slashed as sales via Chinese tourists, students and small professional operators disappeared as international flights were cut dramatically.
The rise in sales of Bubs products in China via e-commerce platforms such as Alibaba was not enough to offset the daigou fall.
Bubs shares closed down 4.4 per cent to 97.5 cents.
But Ms Carr said the business was well placed to grow revenue in 2020-21 because it had a much greater distribution with its products stocked in major supermarkets, Chemist Warehouse, Big W and Baby Bunting.
“We have a very strong, if not the strongest domestic coverage now of infant nutrition across all of the key players. We really can’t have a stronger footprint than that domestically, so the focus now will be about building brand share and consumer marketing,” she said.
The company also unveiled a range of vitamin and mineral supplements for infants and children known as Vita Bubs and said it had signed model Jennifer Hawkins as its new brand ambassador. Ms Carr said Bubs’ first foray into the vitamins category had huge potential and was a “very high margin category”.
Mrs Carr said Ms Hawkins, who is a new mother, was an ideal role model to promote Bubs to new parents across the world, including her 1.8 million plus social media followers.