These 2 ASX shares are growing rapidly, are they unstoppable?

Here are 2 ASX shares that have market leadership goals and are growing revenue rapidly.

| More on:
a happy investor with a wide smile points to a graph that shows an upward trending share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • These two ASX shares are both growing their revenue quickly 
  • Infant formula business Bubs is quickly growing its international sales 
  • ASX tech share Altium is looking to transform the electronic PCB design sector 

COVID-19 has impacted most ASX shares in different ways. Some ASX shares were hurt by the impacts of the pandemic, but they are now recovering and powering ahead.

The below two businesses are ones that have intentions to become leaders at what they do and are rapidly growing their revenue:

Bubs Australia Ltd (ASX: BUB)

Bubs is a producer of goat infant formula products. It also has adult goat milk products, a range of vitamins and organic grass-fed cow milk infant formula. Bubs also has access to Australia's biggest goat herd.

The company recently reported its FY22 half-year result that showed a significant resurgence of corporate daigou demand for products, with gross revenue growth of 276%. Daigou gross revenue is now more than pre-COVID levels.

The ASX share continues to grow its sales through Aussie supermarkets and pharmacies quickly, with scan sales growth of 31%.

Bubs is also opening up several international markets. Excluding China, the half-year international revenue grew by 164% and represented 21% of total revenue.

It has plans to expand in the US market, which is a large market. Bubs also just signed a strategic alliance with lead daigou distributor Willis Trading if it hits certain product purchase milestones over FY22 and FY23.

Altium Limited (ASX: ALU)

Altium is one of the world leaders in the electronic PCB design software space.

One of the main ways that Altium is looking to capture the market is with its cloud offering called Altium 365, which enables engineers to work anywhere and collaborate. Since August 2021, Altium said that the number of monthly users on Altium 365 had grown by 54% to 19,700.

The company saw a return to growth in the FY22 half-year result with revenue growth of 28% to US$102 million and net profit after tax (NPAT) growth of 38% to US$22.9 million.

The ASX share is working on other services it can offer, including Altimade which provides cloud-based 'smart manufacturing' that aims to improve the productivity and manufacturability of electronics hardware and manage the supply chain of components and production risk.

Octopart is also growing rapidly. This segment is a search engine for electrical parts. It saw half-year revenue grow by 105% to US$22 million, it's benefiting from the electrical parts shortage amid all of the COVID-19 impacts.

By 2025, Altium is looking to transform the industry. It's looking to reach 100,000 Altium Designer subscribers as a sign of its dominance.

In FY22, it is expecting its revenue to reach between US$213 million to US$217 million. That would represent growth of between 18% to 20% for the financial year.

Motley Fool contributor Tristan Harrison owns Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Altium. The Motley Fool Australia has recommended BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

Person pointing at an increasing blue graph which represents a rising share price.
Growth Shares

What to buy now with the ASX at a record high

Analysts think these shares could still rise strongly from current levels.

Read more »

A young man looks at a stylised investment graph superimposed on an exterior office building backdrop.
Growth Shares

Where to invest $10,000 in ASX 200 stocks today

Analysts think these high-quality shares are in the buy zone for investors right now.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Growth Shares

Two ASX industrials shares with buy recommendations

One broker believes these growth shares are set to rise.

Read more »

Man smiling at a laptop because of a rising share price.
Growth Shares

I think these 2 exciting ASX growth shares are buys today

These stocks could deliver big returns.

Read more »

a man in a business suit and carrying a laptop stands smiling with hand in pocket outside a large office building in a city environment.
Growth Shares

Buy these 2 impressive ASX 200 shares in July: experts

Experts are bullish about these two businesses.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Growth Shares

3 ASX 200 shares set to dominate the next decade

Let's see why these shares could be great long term picks for Aussie investors.

Read more »

A group of businesspeople clapping.
Growth Shares

3 ASX growth shares with 10-year compounding potential

Let's see which shares are being tipped as buys for growth investors.

Read more »

Woman happy and relaxed on a sofa at a shop.
Growth Shares

Are these 2 top ASX growth shares buys?

Are these high-flyers still buys?

Read more »