A massive blowout in costs at Bubs Australia was due to $17 million in marketing and travel expenses, as well as $2 million spent on legal fees and another $3.6 million outlay on consulting charges, the infant formula company’s annual report shows.Wood Mallesons partner Katrina Rathie, survived a push by the company’s founders to oust them, but at great cost. Other expenses, the report shows, included $3.5 million spent as part of getting approvals to export to the United States, and a $5.
The company said the outcomes of these legal issues “cannot be predicted with certainty” but any pending claims, penalties and litigation would not have a material effect on the group’s financial performance. Bubs recently undertook a strategic review of the business with a particular focus on growth in the US, a reset on the China strategy, and improving working capital. It is aiming for increased ranging of products in the US, where it is seeking permanent approval to continue selling tins into the world’s second-biggest formula market.