Bubs (ASX:BUB) share price dips amid China MD appointment

Here's today's news from the infant formula and baby food producer.

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The Bubs Australia Ltd (ASX: BUB) share price is in the red this morning amid news of the company's latest appointment.

Bubs announced it has appointed a new managing director for its Greater China subsidiary. The company has also been given ordinary membership to the Infant Nutrition Council and several of its management team have been promoted.

At the time of writing, the Bubs Australia share price is 56 cents. That's 3.45% lower than it was at its previous close.

That also brings its gains for this week so far back down to 8%, following the stock's 7% rise yesterday.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.9% this morning. Meanwhile, the All Ordinaries Index (ASX: XAO) has gained 0.8% so far.

While today's news from Bubs Australia is marked non-price sensitive, it's likely drawn the attention of many market watchers. Let's take a closer look.

A man in a business suit holds a mobile phone to his ear while he drinks a large glass of milk.

Image source: Getty Images

Bubs' latest appointment and promotions

The Bubs share price is down after Dylan Lu was appointed as managing director of Bubs' Greater China subsidiary.

Lu has 23 years of relevant experience. His most recent role was as vice president of marketing and e-commerce at the A2 Milk Company Ltd (ASX: A2M).

He also helped set up Hershey Co's (NYSE: HSY) e-commerce business and has worked with numerous international companies doing business in China.

On Lu's appointment, Bubs' chair Dennis Lin commented:

Dylan is eminently qualified to lead our China subsidiary, Bubs (Shanghai) Trading Co. Ltd, and cross-functional team in-market. This senior executive appointment serves to underscore the maturity and depth of talent at Bubs as we add international bench strength to our leadership team.

While it's unlikely today's news has moved the Bubs share price directly, it could inspire more optimism for Bubs' Chinese operations.

On top of Lu's appointment, Bubs also announced a number of internal promotions this morning.

The company's former general manager of marketing, Vivian Zurlo, has stepped up to become Bubs' chief marketing and innovation officer of global markets.

Additionally, Richard Paine, who was previously Bubs' general manager, has been promoted to the role of chief manufacturing officer of quality, dairy, and nutritionals.  

Bubs' founder and CEO Kristy Carr said of the new appointments:

Vivian and Richard… have proven to be major contributors to maintaining marketing momentum and innovation, manufacturing excellence and supply chain resilience, that stands us in good stead to deliver our future global growth aspirations.

Finally, Bubs' trading arm, Infant Food Co Ltd, is now an ordinary member of the Infant Nutrition Council. It had previously been an associate member.

Carr said the membership is an opportunity for Bubs to shape the council's direction in Australia alongside its industry peers.

Bubs share price snapshot

The Bubs share price has struggled on the ASX lately. However, it seems to be inching closer to the long-term green.

Right now, the company's stock is trading for 4.2% less than it was at the start of 2021. It is also 11% lower than it was this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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