Bubs Australia has announced the appointment of its second CEO in nearly two years, entrusting the leadership of the infant-formula company to Joe Coote, a former executive at Fonterra. This transition marks a significant milestone in Bubs’ journey.
Effective immediately, Coote’s appointment was disclosed in a stock exchange filing dated July 28. His predecessor, Reg Weine, who became CEO in August 2023, is departing the company. Weine previously replaced interim chief Richard Paine, who temporarily held the position after the departure of founder and former CEO Kristy Carr in May of the same year.
Joe Coote brings over 20 years of extensive leadership experience in the fast-moving consumer goods (FMCG) sector, particularly within the realms of dairy and infant nutrition. Most recently, he served as CEO of Darigold, the fourth-largest dairy cooperative in the United States, where he was responsible for overseeing global sales exceeding $2 billion.
Before his tenure at Darigold, Coote dedicated 12 years to Fonterra, a leading dairy firm in the Asia-Pacific region, including a role as president of its U.S. division. His wealth of experience positions him well to lead Bubs Australia into new growth phases.
Bubs’ chair, Katrina Rathie, expressed her confidence in Coote’s capability, stating, “We are confident Joe will execute Bubs’ domestic and international growth ambitions with discipline and agility to create sustainable value for our shareholders.” She further elaborated, “His proven track record in driving operational excellence and leading large-scale transformations across international markets will be instrumental in expanding our premium clean-label goat and grass-fed dairy product portfolio across key export destinations, including the USA, China, and other Asian markets.”
According to the filing, Coote will receive an annual salary of A$750,000 (approximately $489,452).
In his first statement as CEO, Coote remarked, “After 15 years abroad building global brands, it’s a privilege to return home and channel my experience into leading an Australian brand that’s redefining premium infant nutrition. I’m excited to lead the Bubs team to build a world-class infant-nutrition brand that delivers exceptional outcomes for our shareholders and families the world over.”
Along with this leadership announcement, Bubs Australia provided its unaudited financial results for the fiscal year 2025. Founded in 2006, Bubs is renowned for producing a range of products, including A2 Beta-Casein Protein, Organic Grass-fed, and Easy-Digest Goat Milk Infant Formula, in addition to an organic baby food line.
Notably, revenue climbed by 29% to A$102.5 million during this fiscal year. However, the company’s gross profit margin saw a decrease of 140 basis points, settling at 47.2%.
In the U.S., which is categorized as Bubs’ “best-performing market,” revenue surged by 52%, yielding A$53 million. This growth stemmed from the expanding demand for premium infant milk formula.
Meanwhile, in China, net revenue experienced a robust growth of 22%, driven by impressive cross-border e-commerce sales of both goat and supreme formulas. In Australia, net revenue increased by 8%, while other global markets, including Vietnam and Japan, witnessed a remarkable 44% growth.
The company forecasts a full-year EBITDA ranging from A$5.5 million to A$6 million, showcasing a significant turnaround from the previous year’s loss of A$19.8 million.
