The Bubs Australia Ltd (ASX: BUB) share price has climbed 1.37% higher in early trade after a relocation announcement from the dairy group this morning.
Why the Bubs Australia share price is climbing higher
Bubs confirmed it is relocating its corporate headquarters to its Australia Deloraine Dairy manufacturing facility in Dandenong South, Victoria.
The Aussie dairy company is looking to bring its supply chain, production and personnel closer together. CEO Kristy Carr said the move will bring “greater agility and scale efficiencies” to the business.
The Bubs Australia share price is climbing higher on the news and is currently trading 1.37% higher at $1.11 per share.
What about the other dairy companies?
While the Bubs Australia share price is climbing higher, it’s been a similar story for rivals A2 Milk Company Ltd (ASX: A2M) and Bellamy’s Australia Ltd (ASX: BAL).
All of the major Aussie infant formula companies are trading higher today as the S&P/ASX 200 (INDEXASX: XJO) has started strongly.
The benchmark Aussie index is up 0.60% to 6,771.50 points at the time of writing with IPH Ltd (ASX: IPH) leading the early gainers.
How have Bubs shares performed in 2019?
Bubs shares have more than doubled in 2019 as the goat dairy company continues its operational expansion.
The company recently announced 2 big agreements in Asia with both Alibaba and Bibo Mart.
The deals could expand the goat dairy company’s revenue channels in Asia and boost earnings higher.
Bubs’ Deloraine brand will be distributed across Alibaba’s extensive online marketplace, while the Bibo Mart deal will further expand Bubs’ Vietnam presence.
At the time of writing, the Bubs Australia share price has rocketed more than 141% higher since the start of the year to $1.11 per share.
The company’s market cap has swelled to $573 million in the process, but it remains much smaller than Bellamy’s or a2 Milk.
Bubs has a long way to go to prove itself as a heavy hitter in the industry but this latest streamlining could be the first major step.
The post Bubs Australia share price jumps on relocation news appeared first on Motley Fool Australia.
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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended BUBS AUST FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019