So, you have some spare cash available to spend on ASX shares right now? Great!
Here are 2 which I think are worth considering: Bubs Australia (ASX: BUB) and Cochlear Limited (ASX: COH). Both are top-quality companies with compelling business models and entrenched market positions in their respective industry niches. I am also confident that both companies have strong growth potential over the next 5–10 years.
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Bubs
Bubs is an Australian based producer of goat milk products. It has successfully built a portfolio of premium, high-margin brands. Bubs concentrate on infant formula products, but its product range also spans across organic baby food, cereals and toddler snacks, as well as adult goat dairy products.
This ASX share has already established an entrenched market position in the Australian market. Bubs is Australia's only vertically integrated producer of goat milk formula. It holds an exclusive milk goat supply agreement with the largest goat herd in Australia.
Bubs have seen recent strong growth due to rising demand for its goat milk products. There has been a growing consumer trend towards alternative baby nutrition options, particularly goat milk which is easier for children to digest. Goat's milk also has a higher calcium content and is less likely to result in skin and gut reactions. This results in better absorption of the milk's nutrients, especially for babies.
Recent revenue growth for Bubs has been very strong. In Q3 FY20 to 31 March 2020, Bubs delivered a 67% increase in revenue to $19.7 million compared to the prior corresponding period.
Bubs is now targeting growth in the Asian market and already that strategy is starting to bear fruit. Chinese revenue soared 104% higher in the third quarter.
Cochlear
Another ASX share that I think is worthy of adding to your share portfolio is Cochlear.
Cochlear is a global manufacturer and distributor of cochlear implantable devices for the hearing impaired. Despite operating in a very small niche in the healthcare market, Cochlear has raised its profile over the last 2 decades to become an Australian household name.
Cochlear has been impacted by the coronavirus crisis due to a reduction in elective surgeries. In particular, Cochlear has suffered a significant decline in Cochlear implant surgeries in the US and Western Europe.
However, I believe the long term future for Cochlear remains very positive. As the proportion of the global population over 65 continues to grow, the demand for hearing products and solutions continues to rise. This demand is set to continue for the next few decades.
