While most companies on the Australian share market have resisted giving guidance in FY 2021 because of the uncertainty caused by the pandemic, a number have reaffirmed their longer term aspirational targets.
Three ASX shares which have bold growth plans over the next five years or so are listed below. Here's what they are trying to achieve in the 2020s:
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Altium Limited (ASX: ALU)
Altium is a leading electronic design software company best-known for its eponymous Altium Designer product. Demand for its software has been increasing over the last few years thanks to the rapidly growing Internet of Things and artificial intelligence markets. Pleasingly, management appears confident in its growth trajectory and is aiming to grow its revenue to US$500 million by 2025-2026. This will be an increase of over 150% from the revenue of US$189 million it achieved in FY 2020.
Bubs Australia Ltd (ASX: BUB)
Another company targeting huge growth over the next five years is Bubs. It is a growing infant formula, baby food, and vitamins company. In FY 2020, the company's revenue grew by 32% to $62 million. This was driven largely by a 58% increase in Bubs infant formula sales to $30 million. Management is now aiming to grow its revenue to $400 million by 2025, with a gross margin floor of 40%. FY 2021 has started slowly because of the pandemic, though. This means Bubs has a uphill struggle to achieve its goals.
SEEK Limited (ASX: SEK)
Finally, another company intent on growing its sales materially in the 2020s is SEEK. In FY 2020, the job listings giant reported revenue of $1,577.4 million. It is now aiming to increase this to $5 billion later this decade. This growth is expected to be driven by its dominant position in the ANZ market, its growing China-based Zhaopin business, and its investments in growth opportunities.
