Several ASX small caps are reporting this week, and in the classic small cap style, we can expect varying results and plenty of volatility.
Two stocks showing mixed performance following the release of FY24 results on Wednesday are Camplify Holdings Ltd (ASX: CHL) and Bubs Australia Ltd (ASX: BUB).
While Camplify shares are flat at $1.30 apiece, they were trading more than 4% higher earlier in the session, fetching $1.35 at one point.
Meanwhile, Bubs shares are down nearly 4% to 12.5 cents apiece at the time of writing.
Let's see what these companies posted.
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ASX small caps post FY24 results
Camplify shares lifted early in the session as investors responded to its FY24 earnings. The company reported a 24.9% increase in revenue for the year, reaching $47.8 million.
This was driven by a 9% rise in total bookings, tallying 89,086. As of August 26 this year, the company had $22.4 million in future bookings, up 2.4% year over year.
The total number of RVs on the platform also grew by 15.4% to 32,786, with notable fleet expansions in New Zealand and Spain.
Meanwhile, membership income increased to $5.2 million during the year, up 205% compared to FY23.
CEO Justin Hales remarked positively on Camplify's strong growth during the year:
For CHL FY24 was a period of consolidation, optimisation, and preparation. In order to position the business for further evolution and potential expansion, CHL needed to invest in consolidation of teams, systems, and procedures to enable efficiency.
In FY24 CHL undertook major projects to enable this goal including the migration of PaulCamper to the centralised CHL platform, and the implementation of a number of business improvement systems. These projects are designed to establish a foundation for growth and improvement in key metrics over the next 3-5 years.
Management says the ASX small cap remains "on track with [its] 3-5 year goals" on revenue, pre-tax earnings, fleet, and members.
We remain committed to our plan, and positive about the ability to deliver against these goals.
Bubs: Turnaround continues, and so do losses
Bubs Australia reported a 33% increase in revenue for FY24, reaching $79 million.
Growth was underscored by a continued recovery in its key export markets, particularly the USA and China.
As a result, the ASX small cap's gross margin improved by more than 11 percentage points over the year from 30% to 41%.
Growth in international markets was 13% for the year, underlined by its presence in Japan and Vietnam. This brings the four-year compounding growth rate in sales to the rest of the world to 20%.
Despite these gains, Bubs still reported a statutory net loss of $21 million. Although, this is far less than the previous year's loss of $108 million.
CEO Reg Weine expressed optimism about the company's strategic direction:
This first year in our turnaround strategy was a pivotal one and an important step in the right direction as we continue to build momentum in the USA and reset our China business. We achieved very strong growth in our two key strategic export markets, with USA revenue up 46% and China revenue up 27% on FY23. We also grew very strongly in our home market and our rest of world markets including Japan and Vietnam.
Bubs has set ambitious goals for FY25, including revenue growth of 28% to $102 million, gross margins exceeding 40%, and a break-even operating income.
While the impact of the non-recurring costs impacted our statutory loss for FY24, their absence in FY25 when coupled with the continued strong momentum in all markets and cost out initiatives, provides a clear pathway to positive trading EBITDA4 (before shared based payments) in FY25.
ASX small caps snapshot
Camplify and Bubs Australia present a tale of two ASX small caps with differing paths after their FY24 earnings results.
Camplify is down 41% in the past months, whereas Bubs has slipped over 30% into the red.
