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Bubs Australia, a key player in the infant nutrition market, has appointed Joe Coote as its new CEO, marking the company's second leadership change in less than two years.

Coote, a former executive at Fonterra and CEO of Darigold, steps into the role immediately, succeeding Reg Weine, who has left the company after just under a year in the position.

He brings over two decades of experience in the fast-moving consumer goods sector, with a strong background in dairy and infant nutrition. His previous role at Darigold, the fourth-largest dairy cooperative in the US, involved overseeing more than $2 billion in global sales.

Coote’s tenure at Fonterra included some leadership positions, notably as president of the US division, which positions him well to navigate the complexities of both domestic and international markets.

Katrina Rathie, chair of Bubs Australia, expressed confidence in Coote's ability to drive the company's growth strategies. She highlighted his "proven track record in driving operational excellence" and his capacity to lead transformations across various international markets.

This is particularly relevant as Bubs aims to expand its premium clean label goat and grass-fed dairy product offerings in key export destinations, including the USs and China.

In a statement, Coote acknowledged the opportunity to lead Bubs: “After 15 years abroad building global brands, it’s a privilege to return home and channel my experience into leading an Australian brand that’s redefining premium infant nutrition.”

Coote highlighted that his main focus will be on developing a world-class brand that meets the demands of consumers and delivers value to shareholders.

Coote's appointment comes on the heels of a tumultuous period for Bubs, which included a legal settlement with its founder and former CEO Kristy Carr, as well as former chairman Dennis Lin.

The dispute, which was settled in February 2024, followed Carr's abrupt departure in May 2023 amid reports of significant financial losses and governance issues.

Bubs had reported an EBITDA loss of AUD 42 million (approximately $27.5 million) in the year leading up to her exit, a stark contrast to a profit of AUD 1.2 million (approximately $785,548) the previous year.

Following Carr’s departure, Bubs underwent a strategic review and significant leadership changes, including the appointment of interim CEO Richard Paine and later Reg Weine.

The company’s latest financial results indicate a recovery, with a 29% revenue increase to AUD 102.5 million for the fiscal year 2025, although gross profit margins declined by 140 basis points to 47.2%.

The U.S. market emerged as the standout performer for Bubs, with a remarkable 52% revenue growth, generating A$53 million. This growth is attributed to the expanding premium infant formula segment.

In China, net revenue increased by 22%, driven by strong cross-border ecommerce sales of its goat and supreme formulas. Additionally, Australia saw an 8% rise in net revenue, while other international markets, including Vietnam and Japan, experienced a significant 44% growth.

Looking ahead, Bubs projects a full-year EBITDA of A$5.5 million to A$6 million, a notable recovery from the previous year’s A$19.8 million loss.