I would also like to welcome Julie Carey and Pradeep de Silva, our auditors from KPMG, who are in attendance today, along with representatives of the company's share registry, Computershare. Of course, I'm especially pleased to welcome all shareholders here today in person and those that are attending online. Turning to procedural matters, the notice of this annual general meeting was circulated to shareholders within the required period, and there are no objections. I would like to move that the notice be taken as read. As set out in the notice of meeting, we have determined that voting on each of the resolutions will be conducted by poll, and I now declare the poll open. Our share registry, Computershare Investor Services, will conduct the poll, and David Squires will act as the returning officer.
The results of the poll will be declared and released to the ASX and published on the company's website later today. Only Bubs shareholders or their duly appointed representatives or proxies are eligible to vote at this meeting. Shareholders and proxy holders present today would have received on registration a voting card that provides for the holding of a poll on the resolutions put to shareholders. You will need to complete this card in order for your vote to be counted. If you have any questions, please speak to a representative of the share registry before lodging your completed poll card. A copy of the Chair's and CEO's address presentations has been lodged with the ASX and will be published in the Bubs Investor section of the company's website.
I have served on the Bubs Australia Board since March 2023, and upon Katrina Rathie's resignation in September this year, I was elected as Chair. I am honored to chair a company that has a strong purpose, a passionate team, and a clear ambition to grow this business. In accordance with the company's constitution, I am subject to director rotation at this AGM and offer myself for re-election as an independent non-executive director. As a brief background, I'm an experienced non-executive director, having served on ASX-listed public and private company boards for over 20 years. I'm a fellow of the Australian Institute of Company Directors, and I currently serve on three commercial and two not-for-profit boards. Since joining the Bubs Board in 2023, I've chaired the Audit and Risk Committee, and I've also been a member of the Nominations and Remunerations Committee.
I wish to acknowledge the contribution and service of Katrina Rathie to Bubs. Katrina served for four years as a director, the latter two as Chair. Katrina oversaw a substantial transformation and can be proud of the company's achievements in the 30 June 2025 year. I would also like to acknowledge the contribution of Reg Weine, who stepped down as our CEO in July this year. In 2023, Reg stepped into the CEO role at a very challenging time for the company, and Reg should be also proud of the foundation stones laid and the financial performance under his leadership. Bubs is not a young business. Founded in 2005, listed on the Australian Stock Exchange in 2017, and it achieved, and in 2025, it achieved several significant milestones.
It delivered annual revenue of AUD 103 million, with revenue growth of 23%, an attractive gross margin of 48%, positive annual operating cash flow of AUD 6.1 million, and the company's made an underlying profit of AUD 600,000. I would also like to thank my fellow board members, the Bubs executive leadership team, all our staff, and our partners in achieving this breakthrough result. The non-financial milestones were also significant. The FDA application for permanent access to the United States market was completed in fiscal year 2025 and submitted in July. I would like to acknowledge Richard Paine, our Chief Operating Officer, and his team's diligent commitment in managing our submission. The process took over three years and involved a significant commitment of management time, and we have invested more than AUD 8 million into that process. I'm pleased to advise that we remain on track to receive approval by 31 December this year.
The legacy China litigation was materially progressed in 2025, and I'm pleased to advise that the matter was resoundingly found in our favor, and it will be concluded in December this year, with Bubs receiving a final settlement payment of AUD 825,000. On reflection and with the benefit of hindsight, our tight financial discipline in managing our working capital and our focus on delivering a positive cash flow for the 30 June year led to an underinvestment in both raw and finished inventory and our marketing expenditure. The impact of this underinvestment was significant, with China, Australia, and the rest of the world year-on-year sales in the September quarter being negative. With limited inventory available, we intentionally prioritized the supply of product to the United States market, and pleasingly this market performed well over the quarter.
However, ensuring that the U.S. had supply, we had to air freight finished product, and this incurred an approximately AUD 2 million air freight charge in the period. In addition to meet demand, we had to source dairy goat solids from New Zealand, and to date, this has attracted a significant penalty of approximately AUD 0.5 million when these finished goods enter the United States. This expensive misjudgment has been recognized, and sales, planning, and operational procedures have been implemented to mitigate this reoccurrence. The current global macroeconomic and geopolitical environment poses challenges, particularly for Australian exporters to the United States. We are expecting elevated global inflation, tighter monetary conditions, rising nationalism, and increasingly protectionist trade policies to continue for the foreseeable future.
Despite this challenging environment, we are confident Australia's long-standing strategic and economic ties with the United States will continue to support bilateral trade between our nations, and we are continuing to proactively be engaged with the U.S. regulatory bodies and U.S. industry associations in monitoring this evolving risk. This will be a pivotal year for Bubs as we build upon our achievements of FY 2025, and I now wish to turn to 2026 and beyond. We are currently focused on investing in the business to ensure we have the capital, both the human and financial capital, and the operational disciplines to realize the opportunity of being an international, world-class company in the premium infant milk formula market. We have a clear objective to create value for the company and our shareholders. The deployment of our capital will aim to reduce risk and be value accretive.
Our people are our greatest resource, and we are in the process of building a high-performance team with a high-performance culture. We have in place a remuneration structure that aligns executive rewards with shareholder value creation. We have reorganized our executive leadership team to reflect the international nature of our business, and we take this opportunity to also increase the bench strength of that team. Through the introduction of a rigorous business planning process, aligning our strategic, financial, and operational plans across the organization, the robustness of our planning and forecasting has been greatly improved. We have further work to go, but this discipline will be critical in managing our international business going forward. Operationally, we remain committed to ensuring that our products are of the highest standard. Quality of our products is not negotiable, and we are confident in our world-class manufacturing facility in Melbourne.
The current recall of ByHeart's infant formula brands in the United States is a reminder to us that product quality and maintaining trust with our consumers is paramount. I pass my concern on to the mothers and their babies affected by the recall and to the ByHeart team as they manage this unfortunate situation. Across the company, we have a strong internal focus in ensuring product quality, and we have a history of exceeding periodic reviews by regulators, including the FDA. While one never wishes or wants to see this unfortunate situation develop, in the United States, we are experiencing mothers switching to our products and recognition of the quality that Australian products are known for. I'm pleased to welcome Joe Coote as our Managing Director and CEO. Joe joined Bubs in July this year, and I believe we've been truly fortunate to engage somebody of Joe's caliber.
His recent international experience in the United States, his intimate knowledge of the global dairy industry from the farm gate to the mouths of babies, and his proven leadership qualities will enable us to confidently execute our strategy. I'm sure Joe will provide you insight into each of these themes as he outlines his strategy going forward in his presentation. At the conclusion of the presentation, Joe and I will be available to take questions that you may have. We will now move to the CEO's address.
Thank you, Paul. Thanks for your leadership, for the support you've shown me since stepping into the role. I would also like to acknowledge Steve, my fellow director, who's here today, and also Naomi, Kat, and Rebecca, members of the Bubs executive leadership team. Finally, extend a warm welcome to the shareholders joining us today.
I want to reiterate Paul's recognition for Katrina, our outgoing Chair, and Reg, our outgoing CEO. Both have contributed enormously to Bubs over many years and across some truly defining periods for the company. We're grateful for their stewardship and resilience they brought to the organization. For me, leading Bubs is both a privilege and a responsibility. From my time in the dairy industry, and particularly while living in the U.S., I watched Bubs from the outside, and I admired the ambition of the brand and the quality of the products. Now, after more than 100 days inside the business, I've developed an appreciation for what makes Bubs special. We operate in a category like no other, where parents trust us with the sole source of nutrition for their newborn babies. This responsibility that comes with that trust is something we strive to honor every day we turn up to work.
As we sit here today, the business is at a real point of inflection. FY 2025 delivered a set of strong results, and as we move through FY 2026, we're now laying down the platform for sustainable, profitable scale, both locally and globally. FY 2026 was a pivotal—sorry, FY 2025 was a pivotal year for Bubs. Across the business, the team delivered on the commitments we set at the start of the year. That includes revenue of AUD 103 million, gross profit of 48%, underlying EBITDA of AUD 0.6 million, and operating cash flow of AUD 6.1 million. These numbers matter because they prove our ability to execute globally at growing scale, and geographic mix reinforces this. 81% of our sales now come from offshore markets, demonstrating how far Bubs has evolved into a global brand. The contributions across our markets were as follows: U.S. 52%, China 21%, Australia 19%, and rest of world 8%.
This performance was supported by active management of marketing, trade spend, inventory, overheads, and headcount. We executed through focused efforts that delivered outcomes, but also surfaced some important learnings, particularly around customer service, working capital, and channel management. Those decisions and learnings have strengthened the business as we move forward. FY 2025 gave us forward momentum, and it laid the groundwork for the growth we are now pursuing. Moving to Q1 of FY 2026, our early performance shows a healthy start to the year. The U.S. continues to be the engine of our growth, contributing the majority of Q1 uplift. The brand is performing well with strong support from retail partners and solid velocity across both goat and cow. Australia, China, and rest of the world were more subdued in the quarter, largely, as Paul said, due to temporary stock shortages, lower marketing spend, and heightened competition.
These were not structural issues, and we expect them to cycle out as we move through Q2 and into the second half. Therefore, our FY 2026 guidance is revenue of between AUD 120 million and AUD 125 million, representing growth of between 22% and 27%, healthy GM of 40%-45%, EBITDA of between AUD 1 million and AUD 2 million, and very importantly, underlying EBITDA of AUD 6.1 million. In terms of just going a little bit deeper into the bridge of that EBITDA number, the starting point is the FY 2025 underlying EBITDA, which was AUD 0.6 million. We move across to gross margin uplift from sales growth. The first driver is strong gross profit improvement with AUD 10 million of additional gross profit coming from top-line growth. Against that, we are intentionally reinvesting AUD 4.5 million into marketing and people capability to fuel U.S. momentum, reinvigorate China, and strengthen our global execution muscle.
After these strategic investments, we are positioned to deliver very strong FY 2026 underlying EBITDA of AUD 6.1 million. We do, as I flagged, have some one-off costs impacting statutory EBITDA. When we adjust for these one-off items, AUD 5 million in temporary costs related to air freighting product and penalty tariffs on New Zealand solids as they enter the U.S. market, and also the positive of the Alison Willis settlement, AUD 825,000, as Paul mentioned, with a net number of AUD 0.7 million, gives us a headline EBITDA number of AUD 1.8 million as our forecast. To support this growth and to lift service levels, we're rebuilding inventory by between AUD 15 million-AUD 20 million. That's a deliberate investment to protect service levels, particularly for our offshore markets of USA and China.
Over my first 100 days, I've met with our teams, our farmers, processors, regulators, retailers, and healthcare professionals, both here in Australia and also in China and the U.S. I'll be off to Vietnam shortly as we explore the next set of opportunities there. Three things stand out for me. Firstly, the macroeconomic remains attractive. We operate in a competitive but profitable category with high barriers to entry. Quality, compliance, and trust matter deeply. That plays directly to Bubs' strengths. Two, Bubs has real strengths to build on. We have huge brand equity. We're well positioned in the premium natural segment. We have great team capability. We have passionate people with real know-how and deep category expertise. We have great go-to-market capability, particularly in the U.S., where our execution rhythm is strong. Finally, our farm-to-formula model. Our supply chain is agile, traceable, and built for quality.
Finally, we also have opportunities to lift performance. We'd benefit from sharper, faster commercial execution, stronger digital marketing and AI and data-driven decision-making, better prioritization and cycle time on decisions, and a more assertive stance with key partners in high-growth markets. These observations are now hardwired into our FY 2026 operating priorities and have shaped our 2030 strategy. With my industry background and years leading businesses in Australia and the U.S., I understand the value of decisive early moves. As CEO, my role is to act quickly while shaping the 2030 strategy. We've moved fast. Some examples of things that we've done: rapid inventory recovery. We've air freighted where needed. We've made spot purchases of goat solids, and we've put on additional manufacturing shifts to lift our production levels. We've strengthened our leadership bench.
We've made new hires into the U.S., and we've made an internal move to lead our Australian and rest of the world sales teams. We're currently recruiting for a U.S.-based global marketing leader, and we have a new role to lead a strengthened corporate services group. We're ramping up general trade in Asia, strengthening our presence in China in the online to offline channel, and we've got renewed traction in Vietnam. We've made selective investments in focused marketing spend. We've re-rated, re-weighted to priority geographies and retail partners. We're putting more money into digital supported by AI, healthcare professional engagement, and social influences. We're also building deeper strategic partnerships. We're building closer alignment with retailers, distributors, suppliers, regulators, and farmers. Finally, the FDA permanent access and execution. It's a huge priority. This has been a thorough multi-year process, highly technical, extremely rigorous, and requiring sustained investment and expertise.
Even during periods of U.S. government shutdown, the FDA staff stayed engaged, and the process continued to progress. I want to acknowledge the team, including Richard Paine, who have carried out this work for many years. Their contribution has been exceptional. We remain confident in receiving a positive outcome before the 31st of December. We're also aware that a U.S.-based competitor, ByHeart, is undergoing a product recall with FDA oversight. We feel for the families impacted by these issues, and to date, our teams are focused on supporting families looking to change formula brands via direct marketing and in conjunction with our retail and healthcare partners. Turning to our 2030 strategy, which we will finalize for full release after the half-year results, at which point we are confident we will have FDA permanent market access approvals. This strategy elevates our ambition and clarifies how we will scale responsibly and profitably.
It's built on the foundation of our core purpose, which is to craft clean nutrition products that provide peace of mind for parents and lifelong well-being for Bubs. It centers on three pillars: the brand and consumer, the families, the moms, portfolio optimization, and finally, our unique farm-to-formula supply chain. It's underpinned by critical enablers of a performance culture, digital marketing supported by AI, innovation, particularly in product and technology, operational excellence, including food quality and safety, and stakeholder management, all built on the bedrock of our Bubs values. Within the strategy, our brand evolves to be naturally gentle, backed by science, and confidently of Australia. This reflects our commitment to natural origins, scientific rigor, and an understated but confident Australian provenance.
Our focus areas include a deeper connection with our target consumer, bold performance-measured digital marketing supported by AI, lifelong value thinking built into acquisition and retention, and a benefit-led product architecture anchored in benefits around gentle tummies, brain, immunity, gut, health, and based on both a goat and grass-fed offer. This is about building the strongest brand foundation in premium natural infant nutrition in the world. Portfolio optimization. This pillar is about disciplined, profitable growth. It focuses on markets. We have strategic markets in the U.S., China, and Australia, where we're playing to win. We have growth markets: Canada, Mexico, and Vietnam, where we're building scale. We have partner markets: Japan, Cambodia, and the Middle East, where we're leveraging our distributor partners.
It also covers product portfolios, where we will renovate both our goat and cow portfolios while also building deeper channel partnerships, expand selectively into adjacencies, and strengthen mixed margin and commercial discipline. Our supply chain is one of our defining strengths. We will continue to embed operational excellence, quality in food safety, safety, efficiency, and service. We're also exploring strategic supply partnerships to create more capacity and opportunity at the right scale and in the right geographies, backed by technology enhancements, including AI, to lift traceability and service. These three strategic pillars are supported by stronger technology, capital discipline, and most importantly, as Paul mentioned, our people and culture. Finally, why Bubs? When you bring all this together, the competitive advantages are clear. We have clean label product range across both goat and bovine. We have strong brand equity in the premium natural high-growth subcategory.
We have low debt and strong cash flow generation. We're a high-quality Australian manufacturing asset with low CapEx requirements and spare capacity. We're margin-positive businesses in both the high-value, high-scale markets of the U.S. and China, and we have a long track record of food quality and safety and compliance. These attributes give us a real conviction not only to our 2030 strategy, but also in the value we can create for families and for our shareholders. In closing, FY 2020 gave us control and confidence. FY 2026 is about disciplined growth and execution. Through our 2030 strategy, we're positioning Bubs to realize its full potential as a trusted premium global infant nutrition brand. Thank you to our teams, our partners, our farmers, and most importantly, the families who choose Bubs, and to our shareholders. Thank you for your support as we continue this journey together.
Thank you, Joe.
I'm now turning to the formal part of the meeting. I now turn to the first item of business of the meeting, which is the consideration of the audited financial statements and related reports for the year ending 30 June 2025. The Corporations Act, Section 317, requires that the audited financial statements and related reports for the 2025 financial year be considered at the meeting. I confirm that these reports were made available to shareholders on the 29th of August 2025. As I mentioned previously, the company's auditors, KPMG, Julie Carey, and Pradeep de Silva, are at the meeting today and are willing and able to answer any questions on the conduct of the audit or the content of the auditor's report. I'm advised by the auditors that no relevant questions for their attention were received prior to the meeting.
Are there any questions or comments on the company's financial and related reports for the year end 30 June 2025? I ask that the company secretary record that the audited 2025 financial and related reports have been received and have been considered by the shareholders. The next item of business, Resolution 1, is a non-binding resolution to adopt the company's remuneration report, which was set out in the company's 2025 annual report. The vote on this resolution is advisory only. However, the board will take into account any discussions on the resolution and the outcome of the vote when considering the future remuneration policies and practices of the company. The resolution appears on the screen, and I will take this as being read. Details of the valid proxy votes on the resolution also appear on the screen. Are there any questions on this resolution?
I now put the resolution to the meeting and ask that you complete your poll voting cards for Resolution 1. We will now move to Resolution 2. As the resolution relates to myself, I will hand the chair to my fellow director, Steve Lin .
The next item of business, Resolution 2, relates to the re-election of Mr. Paul Jensen, who retires as a director by rotation in accordance with the constitution of the company and being eligible, is re-elected as a non-executive director of the company. The resolution appears on the screen, and I will take it as being read. Details of the valid proxy votes on the resolution also appear on the screen. I now put the resolution to the meeting and ask that you complete your poll voting card for Resolution 2. Are there any questions on this resolution? Great.
I'll now hand the chair back to Paul.
Thank you. The next item of business, Resolution 3, relates to the grant of long-term performance rights shares to Mr. Joe Coote, as set out in the explanatory statement. The resolution appears on screen, and I will take it as being read. Details of valid proxy votes on the resolution also appear on screen. Are there any questions on this resolution? I now put the resolution to the meeting and ask that you complete your poll voting card for Resolution 3. I will now move to Resolution 4. The next item of business, Resolution 4, relates to the grant of performance rights shares to Mr. Joe Coote, as set out in the explanatory statement. The resolution appears on screen, and I will take it as being read.
Details of the valid proxy votes on the resolution also appear on screen. Are there any questions on this resolution? I now put this resolution to the meeting and ask that you complete your poll voting card for Resolution 4. I will now move to Resolution 5. The next item of business, Resolution 5, relates to the approval of an additional 10% placement capacity in accordance with ASX Listing Rule 7.1 and 7.1A, as set out in the explanatory statement. The resolution appears on screen, and I will take it as being read. Details of the valid proxy votes on the resolution also appear on screen. Are there any questions on this resolution? I now put the resolution to the meeting and ask that you complete your poll voting cards for Resolution 5. I will now move to Resolution 6.
The next item of business, Resolution 6, relates to the approval of proportional takeover provisions and Rule 36 of the Constitution to be renewed for a period of three years effective at the close of this meeting. The resolution appears on screen, and I will take it as being read. Details of the valid proxy votes on the resolution also appear on screen. Are there any questions on this resolution? I now put this resolution to the meeting and ask that you complete your poll voting cards for Resolution 6. Before we move to the poll procedures, I will address any pre-registered general questions. The Company Secretary, are there any pre-registered general questions from our shareholders? Thank you, Chair. We have received a few questions.
Question number one: In your continued engagement with FDA, following submissions of the final application, how realistic is it for the company to expect FDA approval by the end of the year? Are there any delays to be expected? Would the U.S. government shutdown have any impact on the timeline?
Yeah, thanks, Paul. [audio distortion]
I was actually on call this morning. We're feeling very good about our engagement with the FDA. As I mentioned in my address, the FDA staff did work through the U.S. government shutdown. We've answered all their questions. We continue very strong and positive engagement, and all indications are that we will hear from them, as they've previously indicated, before the 31st of December.
Thank you. The next question, Q1 FY 2026, quarterly should be—sorry, should be FY 2025.
Quarterly activities report in the regional overview of all the markets is of all of the markets except U.S. have been down. Is there an explanation for that? Also, how is the company focused on getting China back on track, and why has Chinese market declined?
I think I touched on that in my address. Joe, I do not know whether you have got anything to add.
Yeah, I think I covered it as well. Yeah, we do not see the issues as long-term structural. We have got very strong businesses with great brand equity and teams working hard. We feel confident about the future.
Thank you. The last question: Is there any interest in a company being taken over, or is the board looking at takeover once FDA is approved?
At this stage, we are not aware of any takeover interest in Bubs Australia.
The board has delved deeply into understanding the value of our company. If a shorter takeover offer arrives, we would assess that offer against our assessment of what we believe the value of the company is. In saying that, we're very cognizant of maximizing the return for our shareholders. That is our objective. Are there any general questions from the floor? Please. Yep. Perhaps if I could turn that to our CFO to bridge that gap. Naomi.
Thank you, Paul. Yes, I can answer that question. The 5.5 was the standard EBITDA number for the year, and the 0.6 was the normalized or underlying number. That 0.6 took into account the Alison Willis legal settlement, as well as some insurance premium payouts, which were one-off in nature. That's why you had the difference between the 5.5 and the 0.6. Are we down yet? It's 5.5. Yep.
On a statutory basis.
Please. Perhaps if I could turn that to Joe.
Yeah, so the SAMR is the approval required to sell into the general trade in China. It's something we don't currently have. We sell in the CBEC, which is the cross-border channel. It is something that's of high interest. We're very committed to the China market. It's something in the strategy that we are currently looking at very closely. I believe we'll have a view on that when we come back for the strategy in March. Now, the end of the year discussion is around the FDA, which is the U.S. market, but we have an equal commitment strategically to the China market. We do have an interest in a SAMR license, and it is under consideration.
Just, Joe, it might be worthwhile just your point about achieving SAMR registration by the end of the year. In your experience, what's the timeline set for SAMR application?
Yeah, the indications currently are it's a two- to four-year process. It is a very significant process, but still something that we have a high interest in. We do not currently have any activity on a SAMR license. We have a strong business in China, so we are selling through cross-border. We also have a general trade business where we sell online to offline. Extending further into the general trade through a SAMR license would be an additional growth opportunity, but it is not necessary to continue the growth that we are currently experiencing and profitable growth at that as well.
Does that answer your questions? Good. Thank you.
I would also say, Joe, I mean, you might want to talk about the OTO distribution channel gets us into a lot of the provinces and cities, perhaps, that the SAMR license would.
Yeah, over the past few years, the team has done a great job in getting our products into the general trade, which is the outlets across the provinces. I think we're in over 1,200 outlets. We have quite a presence in those markets. I have visited some of those markets in Hefei, one of the cities inland from Shanghai. Yeah, we're very proud of our presence in a number of provinces across the country, over 1,200 outlets, and our product is selling well. The SAMR would be an extension to that, and it would allow us to have a broader range of products in those stores.
One of the things that we've discussed at the board is that while the China market is a very large market, it's also an incredibly competitive market. As we think about the SAMR opportunity, it's making sure that we really understand what is the opportunity to drive profitable growth for Bubs Australia. Just to be in the game and lose money probably doesn't make a lot of sense. It is one of the most competitive markets in the world, frankly, for infant milk formula amidst a declining birth rate. I think that Bubs is one of the few actually profitable infant milk formula businesses in China today that is still growing.
I know that our financials don't show it in this last quarter, but please remember that Bubs Australia sales are representative of sales to distributors as opposed to what is actually happening in the market in terms of sell-through, sell-in versus sell-through. I think the company, Joe, and the team have done a great job of demonstrating that our sell-through or sales to customers continues to grow in the market in China despite an industry trend that is very different from Bubs' growth trajectory. When we think about SAMR, I think the board is really trying to figure out what is the right model for us to go ahead, given that we're already on cross-border e-commerce, and OTO provides us a lot of the same access that SAMR approval already would enable us to go in through other mother baby stores.
The daigou channel is not currently a focus for us. I mean, across the industry, post-COVID, with the inability to travel cross-border, it really was something that came to almost an abrupt halt at that point. It's something that hasn't—I guess the market now has evolved. The cross-border commerce is done through online channels. Obviously, there's the general trade where people go into the outlets. It's a very—as Steve said, it's a very appealing market, but the daigou channel is not something that's currently active and not a focus for us, as we see in our strategy. Please.
Not having to pay the tariffs. Now I'm assuming that you've already started having to deal with the tariffs. What sort of impacts do you see happening in that market? There might be some positive ones. There might be some negative ones.
How do you account for the negative ones?
Yes. I mean, the U.S. is a large profitable market. Some of the dynamics around the birth rates and the participation rates in feeding are not as favorable as the premium natural sub-sector that we are in as Bubs, and that's growing significantly. Within that sub-category, the goat sub-category is growing even more. We feel really good about the dynamics of the market. The market is welcoming of us as a foreign participant. I think, as Paul mentioned, the reputation we have as an Australian-sourced business for our high-quality products is recognized. The consumers have a strong affinity with our brand, so we have brand equity. Unfortunately, at the moment, when we cross the border, there are these Trump tariffs, and for Australia, they're 10%. At this point, we are absorbing those tariffs.
As we indicated, though, if we do use dairy solids from outside Australia, and in the last quarter, we did bring some dairy solids in from New Zealand to top up the goat solids, particularly from Australia, then we're attracting a 27% tariff as we cross the border. Now our other import competitors are from Europe, which is at 15%, and the U.K., which is at 10%. We are at parity, and we're still very, very positive about the margins in the U.S. market and the opportunities for our business to grow.
Follow-up on that tariff question. Wasn't the news from the Trump administration is if you invest in manufacturing in America, there would be a tariff exception?
I'm not aware of that. I haven't heard that. There was a lot of announcements, and we do watch carefully.
We have a great bunch of advisors in the U.S. as well and a team in the U.S. that monitor that. That's not something that I've heard.
Are there any further questions? Thank you very much for your engagement. I do thank you for taking the time to come along today. It's very important for us, and we do appreciate your time and the questions. That concludes the business to be considered at this meeting. If you have any questions, any further questions, please speak to a representative of the share registry before lodging your poll card. I now invite David Squires to collect your voting cards. Once you have completed your poll voting cards, please place them in the poll box. Thank you. Now that I've voted, have all persons who have intended to vote now voted?
It appears as though the voting process has been completed, and I therefore declare the poll closed. The results of the poll will be notified to the Australian Stock Exchange and will also be published on the company's investor website as soon as practical. That concludes the business of the meeting, and I now declare the meeting closed. I would like to thank all shareholders in person and those online for your attendance and ongoing support of the company. My fellow directors and Bubs leadership team and I are happy to talk to you and answer any further questions that you may have over refreshments in the foyer. Thank you very much.