The Bubs Australia Ltd (ASX: BUB) share price is trading flat on Monday following the release of its annual general meeting presentation.
In afternoon trade, the infant formula, baby food, and vitamins company's shares are fetching 71 cents.
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What happened at the Bubs annual general meeting?
At the meeting the company warned shareholders that FY 2021 would be a challenging year because of the pandemic.
Nevertheless, it did have a success Double 11 (Chinese singles' day) promotional period.
Bubs recorded Double 11 sales growth of 174% compared to the prior corresponding period. Management notes that sales on its Tmall Flagship store exceeded last year's sales in the first hour of its campaign.
Bubs also revealed that it enjoyed significant growth on other platforms such as JD.com, VIP.com, and Kaola. So much so, Bubs Goat is now the number 3 imported Goat infant milk formula brand on Kaola ahead of the company's two largest international competitors.
What about the future?
Management believes Bubs is well positioned to deliver sustainable long-term growth as it navigates through the disruption of the COVID-19 macro-environment.
It also notes that demand remains strong for its products "as Chinese parents continue to trade up to premium and authentic infant nutritional products."
Looking further ahead, management believes the company is well-placed to achieve its long term growth targets.
It commented: "We have a clear vision across our three growth horizons to realistically aspire to a business turning over $400 million in five years' time – a vision shared by our institutional investors who oversubscribed to the recent Share Placement."
What happened with the shareholder votes at the annual general meeting?
While management has spoken very positively about the future, many of Bubs shareholders don't appear pleased with the way the company has been run in recent times.
And while there are still some votes open and usable, as things stand, Bubs is about to narrowly avoid receiving a first strike against its remuneration report. According to the presentation, 20.21% of votes have been made against the renumeration report.
Furthermore, approximately 10.4% of votes have been made against the re-election of executive chairman, Dennis Lin, and 13.2% of votes were made against the issuing of options to CEO, Kristy Carr.
