Bubs Australia Ltd. · ASX:BUB
Bubs Australia — FY2021 Earnings Presentation
31 slides from Bubs Australia's earnings presentation, Aug 31, 2021
Slide 1: FY21 Annual Results
READY TO REBUILD FY21 Annual Results 31 August 2021 Jennifer Hawkins Bubs Global Brand Ambassador
Slide 2: Disclaimer
DISCLAIMER DISCLAIMER This investor presentation (Presentation) is dated 31 August 2021 and has been prepared by Bubs Australia Limited (ACN 060 094 742) (Bubs or the Company). The material in this Presentation is general background information about Bubs’ activities current at the date of the Prese
Slide 3: Growing Generation Joy
Slide 4: Vision & Values
VISION & VALUES Creating new generations of happy & healthy GOODNESS VERY BEST We believe in wholesome, We believe in being thorough healthy food and a positive and uncompromising, sticking approach to life. to our ethics no matter what. HONESTY PLAYFULNESS We believe in 100% We believe in the joy o
Slide 5: Contents
CONTENTS Key Milestones & Macro Forces 06 FY21 Financial Review 10 Strategic Roadmap 18 Outlook 28 5
Slide 6: Key Milestone Events
KEY MILESTONES & MACRO FORCES KEY MILESTONE EVENTS COVID-19 PANDEMIC MORE THAN DOUBLED IMPACT & RESPONSE Protecting employees, prioritising liquidity and DOMESTIC MARKET SHARE² balance sheet. Managing supply chain and inventory FASTEST GROWING INFANT in the channel in response to demand shocks. FORM
Slide 7: COVID-19 Disruptions
KEY MILESTONES & MACRO FORCES COVID-19 DISRUPTIONS Global macro forces impacting sales channels created a significant demand and supply shock. FY21 focused on the immediate need to mitigate impact from excess inventory in channel. Australian Border Closures Infant Formula Category declined in Austra
Slide 8: COVID-19 Bubs Response
KEY MILESTONES & MACRO FORCES COVID-19 BUBS RESPONSE Our response throughout FY21 focused on four pandemic phases to protect our base for rebuild. Strengthening our foundations to mitigate future demand shocks. #4 Rebuild CHANNEL & PRODUCT REINVIGORATION FY22 • Protect our core product base, key cha
Slide 9: Deepening Our Bench Strength for Future Growth
KEY MILESTONES & MACRO FORCES DEEPENING OUR BENCH STRENGTH FOR FUTURE GROWTH Post balance sheet appointments of new Board Director, Katrina Rathie and COO, Fabrizio Jorge. Supporting future business needs with expertise in global strategy, dairy operations and international regulatory compliance. BO
Slide 10: FY21 Financial Review
pCobs" FY21 FINANCIAL REVIEW 23
Slide 11: Financial Highlights
FY21 FINANCIAL REVIEW ASX 300 Bubs Australia FINANCIAL HIGHLIGHTS FY21 results impacted by global pandemic with some growth in core products and focus channels. $46.8m Group Gross Revenue1 +26% +51.5% Bubs Australia fastest growing Goat Infant Formula China CBEC gross revenue¹ growth pcp. Infant For
Slide 12: Financial Overview
FY21 FINANCIAL REVIEW FINANCIAL OVERVIEW COVID disruption had adverse impact on gross margin² • Group gross margin² decreased to $7.3 million loss. This was primarily due to $12.6 million inventory write-off including Take or Pay penalties of $850k for shortfall in reserved capacity with manufacture
Slide 13: FY21 Demand Shock Impact & Reset Towards Resilience
FY21 FINANCIAL REVIEW FY21 DEMAND SHOCK IMPACT & RESET TOWARDS RESILIENCE Sudden impact of border closures with FY21 focus on reset strategies to build resilience. Focused team efforts on immediate actions to rebalance inventory, preserve cash and redirect portfolio investment. GROUP GROSS REVENUE¹
Slide 14: FY21 Full Year in Line with Pre-COVID FY19
FY21 FINANCIAL REVIEW FY21 FULL YEAR IN LINE WITH PRE-COVID FY19 First half growth momentum was restricted due to COVID-led channel disruption. +10% Half-on-Half increase in 2H FY21 with full year gross revenue¹ rebuilding to pre-COVID FY19 levels. GROUP GROSS REVENUE¹ ($ million) -24% pcp 70 driven
Slide 15: FY21 Market and Portfolio Expansion
FY21 FINANCIAL REVIEW FY21 MARKET AND PORTFOLIO EXPANSION Multiple revenue streams and product portfolio growth drivers across Australia and Asia. MARKET DIVERSIFICATION BALANCED PRODUCT MIX International expansion strategy continues with Investing in core margin drivers: advances in China and new m
Slide 16: Gross Margin Analysis
FY21 FINANCIAL REVIEW GROSS MARGIN¹ ANALYSIS Whilst group gross margin¹ of branded products in FY21 was impacted by need to redirect greater trade investment, our hero product - Bubs® Goat Infant Formula product margin¹ was consistent with FY20 despite COVID-19 disruption to most profitable channel
Slide 17: FY21 Robust Balance Sheet
FY21 FINANCIAL REVIEW FY21 ROBUST BALANCE SHEET Managed working capital and inventory position throughout a volatile period. 80.0 60.0 30.6 (5.0) (0.6) 40.0 62.6 26.0 27.9 (7.8) $'M 20.0 0.0 (20.0) (77.9) (40.0) Capital raising (net of costs) Investments in PPE & Intangibles Non cash transactions Ca
Slide 18: Strategic Road Map
pCobs" STRATEGIC ROAD MAP
Slide 19: Key Pillars to Sustained Resilience & Rebuild
STRATEGIC ROAD MAP KEY PILLARS TO SUSTAINED RESILIENCE & REBUILD We will continue to focus on our four operational pillars for continued resilience of our base. 1. Specialty dairy focus 2. Margin improvement 3. Daigou 2.0 facilitated omni-channel sales 4. Rebalance inventory levels 19
Slide 20: 4 Key Operational Pillars – Scorecard
STRATEGIC ROAD MAP 4 KEY OPERATIONAL PILLARS – SCORECARD Operational action plan for building on strategic pillars in response to COVID-led channel disruption. Key Priorities Objective Key Focus Areas Status Timing Specialty • Drive • Focus on hero products Goat Milk Infant Formula and 1H FY22 Dairy
Slide 21: FY22 Strategic Focus on Sales Channels
STRATEGIC ROAD MAP FY22 STRATEGIC FOCUS ON 4 SALES CHANNELS We have identified 4 strategic sales channels that are complementary to unlock value. Each business unit has distinctive features and different opportunities for sustained profitable growth. 1. Australia & New Zealand 2. China 3. Other Inte
Slide 22: ANZ: Leading Category Challenger
STRATEGIC ROAD MAP ANZ: LEADING CATEGORY CHALLENGER Bubs Australia is the fastest growing Infant Formula manufacturer¹ in Australian Grocery and Pharmacy. Bubs® remains in high scan sales growth, outperforming the category. FY21 INFANT FORMULA CATEGORY RETAIL SCAN DOLLAR SALES (%) GROWTH¹ BY MANUFAC
Slide 23: ANZ: Market Share More Than Doubles in Past Year
STRATEGIC ROAD MAP ANZ: MARKET SHARE MORE THAN DOUBLES IN PAST YEAR Bubs Australia remains in high market share growth across Australian Grocery and Pharmacy. Commenced 3.6% BUBS MARKET #2 GOAT BRAND¹ consumer brand SHARE¹ 4.0 campaign, featuring 3000.0 +2.1 Share point Jennifer Hawkins. gain pcp. 3
Slide 24: China: CBEC Infant Formula Gross Revenue +26% pcp
STRATEGIC ROAD MAP CHINA: CBEC INFANT FORMULA GROSS REVENUE¹ +26% pcp Despite channel disruption, cross border e-Commerce demonstrating growth. Bubs® Goat Infant Formula ranked #6² across all China Domestic and Imported Goat Dairy brands combined during 618 festival JD.COM 618 ALIBABA 618 SHOPPING S
Slide 25: China: Daigou Channel Reinvention
STRATEGIC ROAD MAP CHINA: DAIGOU CHANNEL REINVENTION Traditional Daigou and personal shopper gift store model now replaced by sustainable, more transparent and professional Corporate Daigou with integrated e-Commerce and omni-channel model connecting directly with consumers, supported by centralised
Slide 26: International: Building Momentum
STRATEGIC ROAD MAP INTERNATIONAL: BUILDING MOMENTUM Despite continued and significant market disruption across International markets, gross revenue¹ for total International increased 57% pcp. Received 2021 Parent’s Choice Award in Malaysia. WINNER OF 2021 TOTAL INTERNATIONAL PARENT’S CHOICE AWARD EX
Slide 27: USA: Entering New Growth Opportunity
STRATEGIC ROAD MAP USA: ENTERING NEW GROWTH OPPORTUNITY Expanding international coverage into USA Toddler Nutrition market - on track for September launch. Market expansion opportunity • Entry point into USA market with combined total Infant Formula and Toddler Formula retail category worth $USD 5.1
Slide 28: Outlook
pubs OUTLOOK
Slide 29: Outlook
OUTLOOK OUTLOOK Opportunity to stretch Bubs® brand equity into new categories, consumer segments and occasions. VISION: CREATE THE NEXT GENERATION OF HAPPY & HEALTHY FAMILIES PILLARS: INFANT JUNIOR FAMILY SPECIALTY NUTRITION NUTRITION NUTRITION NUTRITION VERY BEST PLAYFULNESS GOODNESS HONESTY VALUES
Slide 30: Outlook
OUTLOOK OUTLOOK Bubs is well placed with strong foundations, brand share growth and a robust balance sheet to go forward with a sustainable growth strategy as the Australian lead challenger brand in infant nutrition. Responding to pandemic impacts with our unique strategic pillars Continued focus on
Slide 31: Bubs Australia
= ASX: BUB Bubs Australia Growing Generation Joy