Azzet reports on three stocks trading higher after reporting updates today.
Bubs Australia rallies after posting maiden profit
Shares in Bubs Australia (ASX: BUB) were up around 6.1% by 1:30 pm AEST (3:30 am GMT) after the infant formula company posted its first statutory profit after tax of $5.5 million for FY25, which marks a major recovery from its $21 million loss last year.
Underpinning the company’s turnaround – with underlying earnings at $600,000 following the previous $20.3 million loss – were the company’s international markets, while domestic sales were a notable outlier, having significantly underperformed.
The United States, the company’s star-performing market, now accounting for over half of total sales, saw revenue jump 52% to $53.1 million due to the growing premium and goat IMF segments.
Meantime, due to online-to-offline expansion into 1,315 stores plus strong cross-border e-commerce sales, China sales were up 22% to $21.1 million.
Growth in China was driven by strong CBEC sales of Goat IMF and Supreme IMF and Bubs’ successful expansion into the O2O channel, where Bubs is now stocked in 1276 stores.
Revenue for adult goat dairy products, which is predominantly sold in China, was $12.4 million for the year, an increase of 10% on $11.3 million in FY24.
Rest of World markets also outperformed with 44% year-on-year net revenue growth driven by Vietnam and Japan.
However, here in Australia, sales slipped 8% to $19.8 million.
While management acknowledged the contribution of core export markets – notably the U.S and China – to the FY25 result, it also reiterated the company’s focus on building premium and goat-based infant formula segments globally.
Group highlights today include:
- FY25 full year net revenue of $102.5 million, up 29% on FY24.
- FY25 full year gross profit margin of 47.2% down 1.4% on FY24.
- Q4 FY25 earnings of $4.31 million versus a $9.9 million earnings loss in the previous period.
- FY25 full year positive operating cash flow of $5 million.
- $17.4 million in total cash and cash equivalents plus $10.0 million in undrawn debt facilities available as at 30 June 2025.
Today’s FY25 result coincided with the appointment of Joe Coote as its new CEO, effective immediately.
Most recently, Coote was the CEO of Darigold, the fourth-largest dairy cooperative in the USA, overseeing over US$2 billion in global sales and prior to that spent 12 years at Fonterra in senior roles.
Bubs Australia has a market cap of $156 million; the share piece is up 45% in one year and up 13% in the last week.
While the stock’s 200-day moving average is trending higher, there is significant evidence that the bullish trend is near an end.
Recent price action has shown a lack of strength as the 5-day moving average has fallen below the 50-day moving average and the 20-day moving average is trending lower.
Consensus is Moderate Buy.
Cettire soars following net FY25 loss
Shares in Cettire (ASX: CTT) were up around 4% despite the online luxury goods company posting a FY25 net loss of $2.6 million – down 125% on the previous year’s profit of $10.5 million - due largely to a significant deterioration within its single largest market, the U.S.
The one-time ASX darling’s FY25 result felt the full brunt of challenging global markets and particularly the impact of tariffs on U.S. sales.
The market’s sentiment about what was a notably weak underlying result today has clearly left short sellers scratching their heads, with the share price still up around 5% at noon.
With a short interest of 8.8%, Cettire is the 11th most shorted on the ASX, and today’s rise has left short sellers having to reassess their positions.
Short sellers love the stock, which has been on a straight downward descent since trading at $4.70 in February 2024.
Since then, the stock has shed 93% of its value.
However, what may have sparked the market’s imagination today was the progress the company appears to have made in growing and diversifying its supply chain, while improving its technology.
“Despite the challenging backdrop, we have remained focused on consistent execution against our plan to grow Cettire’s share of the global personal luxury goods market profitably,” Cettire’s founder & CEO, Dean Mintz told the market.
As localisation initiatives gain traction, he expects the revenue base to continue to geographically broaden, which in turn enhances Cettire’s ability to withstand different challenges.
“We are relentlessly focused on driving profitable revenue growth while expanding our global footprint and remaining self-funding,” he said.
“Looking forward, as demand improves and we continue to invest in scaling the business… we have an unparalleled business model which is well placed to navigate the challenges presented by current market conditions.”
Outlook
Despite uncertainty within the global luxury personal goods market, year-on-year growth rates in the U.S. have materially improved in July and August, month-to-date.
Nevertheless, the company has flagged significant market disruption from changes to the U.S. de minimis rules, effective 29 August 2025 and remains uncertain of a continuation of improving trends in the U.S. experienced during July and August.
Meanwhile, in FY26 year-to-date, overall gross revenues have increased by low-single digit % versus the previous period (pcp), while emerging markets increased by double-digit % versus last year.
In the seasonally low month of July, Cettire delivered positive adjusted earnings.
Key numbers announced today:
- Gross Revenue of $975.3 million (FY24: $978.3 million).
- Sales Revenue of $742.1 million (FY24: $742.3 million).
- Active Customers: 657k (FY24: 692k).
- Repeat Customers: Accounted for 68% of gross revenue (FY24: 61%).
- Delivered Margin: $119.4 million, representing 16.1% of sales revenue (FY24: 20.9%).
- Ended the period with $37.1 million in cash (FY24: $79.0 million) and zero financial debt.
Cettire has a market cap of $121 million; the share price is down 70% in one year and up 12% in the last week.
Consensus is Moderate Sell.
Austal rallies on six-fold earnings jump
Shares in Austal (ASX: ASB) surged 15.4% after the shipbuilder posted a six-fold increase in annual profit to $89.7 million, with the major turnaround being attributed to stronger shipbuilding performance and a near record-high order book of $13 billion in the year.
Due to new defence programs in the U.S and Australia, revenue rose 24% to $1.8 billion, while earnings more than doubled to $113.4 million, in line with upgraded guidance.
Operating cash flow rebounded to $406.3 million, leaving the shipbuilder with $583.9 million in cash and a net cash position of $453.1 million, up from just $3.9 million a year earlier.
To conserve cash during a major capital expenditure program to expand capacity in both Australia and the U.S., the company chose not to issue a dividend.
A recently signed Strategic Shipbuilding Agreement with the Australian government is expected to underpin further growth in the company’s order book.
After being formally appointed as the Commonwealth of Australia’s strategic shipbuilder – which saw the company create a new unit, Austal Defence Australia – the 15-year government contract is expected to see Austal build 24 tier 2 surface combatants for the Commonwealth Navy at its WA operations in Henderson.
The company’s share price has been on a tear this year, having virtually doubled to $7.77 since mid-March this year.
Commenting on today’s update, CEO Patrick Gregg told the market the past financial year marked “a transformational year” for the company.
“We have seen important inflection points on earnings performance, the balance sheet repositioned for a major expansion in manufacturing capacity, and further growth potential in our near record order book following the recent approval of Austal as Australia’s strategic shipbuilder,” he said.
Austal expects further revenue and earnings growth in the 2025–26 financial year, supported by major defence contracts and new infrastructure projects.
In response to recent developments, Macquarie has raised its earnings forecasts for FY25 through FY27 by up to 28% and increased its 12-month price target to $7.05.
The broker also lifted its valuation multiple range from 13–15x to 15–17x earnings, which is now more aligned with global defence peers who have also seen multiple expansion in recent months.
However, despite the upgrade, Macquarie retained a Neutral rating on the stock, with the share price already factoring in most of the upside.
Austal has a market cap of $3.2 billion; the share price is up 235% in one year and 14% in the last week.
The stock is in a long-term bullish pattern confirmed by multiple indicators.
Consensus is Hold.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
