Baby Bunting Group Ltd. · ASX:BBN
Baby Bunting — Shareholder Meeting (October 2024)
24 slides from Baby Bunting's shareholder meeting presentation, Oct 15, 2024
Slide 1: 2024 Annual General Meeting
2024 Annual General Meeting Melanie Wilson, Chair, Non-Executive Director Mark Teperson, Chief Executive Officer 15 October 2024 1
Slide 2: Important notice and disclaimer
Important notice and disclaimer Forward looking statements Pro forma financial information This document is a presentation of general This document contains certain forward looking statements and Pro forma financial results have been calculated to exclude background information about the activities
Slide 3: Agenda
Agenda 1. Chair Address 2. CEO Address 3. FY25 Trading Update and Outlook 4. Formal Business 2024 Annual General Meeting 3
Slide 4: Melanie Wilson
Melanie Wilson Chair, Non-Executive Director 2024 Annual General Meeting 4
Slide 5: The best start for the brightest
Our Vision Our Mission The best To support & start for inspire confident the brightest parenting, future from newborn to toddler 2024 Annual General Meeting 5
Slide 6: Our market: $6.3 billion ANZ TAM and growing
Our market: $6.3 billion ANZ TAM and growing Significant opportunity to grow and leverage our leadership in hard goods (~23% market share) to grow our share of soft goods Our core competency The opportunity in soft goods 1.8 3.4 $ $ Incremental 1% gain in soft goods market Bn ~23% ~3% Bn share equal
Slide 7: Sustainability
Sustainability 40 % Car seat recycling trial Life’s Little Treasures We are an active supporter Baby Bunting has an commenced – 12 month Foundation supports the of PANDA. PANDA offers objective of at least 40% of trial across four families of sick and premature information, services, women across al
Slide 8: Mark Teperson
Mark Teperson Chief Executive Officer 2024 Annual General Meeting 8
Slide 9: Growth plan
Delivering shareholder value Growth 1 • Leverage our strength in nursery essentials (hard goods) plan Strengthen market Grow • Capitalise on significant opportunity in position Market soft goods market through our market share leading hard goods offer Baby Bunting has a strong core business as • Cle
Slide 10: Executing on the plan
Executing on the plan Business initiatives and revised go-to-market strategy starting to deliver FY24 results FY25 trade update • Pro Forma1 NPAT $3.7m (FY24 guidance $2m–$4m) On track to deliver targeted 40% gross margin for FY25 Statutory NPAT of $1.7m • Q1 FY25 gross margin % was 40.3% up 240 bps
Slide 11: Grow Gross Margin
Returning to growth Grow EBITDA Grow Gross Margin In FY25, we are targeting 40% gross margin with further expansion targeted in future years ~42% In progress In progress In progress 1.5% In progress 36.8% Achieved FY24 margin Medium Simplify price Trading Amplify Scale private De-range term target a
Slide 12: Our new store experience: timetable
Returning to growth Grow Return on Invested Capital Our new store experience: timetable We're making Australia's best specialty baby goods store network even better Progress on track Brand Creative Platform In-store Experience Design Retail Customer Experience Design Build Prep Construction Open Per
Slide 13: Our Progress
Strategic Priorities Our Progress Growth objectives Deliverables 1 Enhance customer Grow experience Market leading Exceptional Best-in-class Data & Market products experiences services Analytics share New brands launched Store experience 1-on-1 personalised Requirements for new We presented our appo
Slide 14: Our Progress
Strategic Priorities Our Progress Growth objectives Deliverables 2 Drive platform Grow Grow leverage Gross Margin Media New Zealand Operating EBITDA business profitability leverage Trading terms Completed an audit Trading terms updated for Re-shaped our core We presented our and valuation of our key
Slide 15: Our Progress
Strategic Priorities Our Progress Growth objectives Deliverables 3 Disciplined Grow capital Return on management Network Refurbish Inventory Re-platforming invested growth existing store productivity ERP/POS capital network Grow store network First 3 stores to be New inventory To be progressed in We
Slide 16: FY25 Outlook
FY25 Outlook 2024 Annual General Meeting 2024 Annual General Meeting 16
Slide 17: FY25 Outlook
FY25 Outlook Stabilising the business and returning to positive earnings growth FY25 trade update Outlook On track to deliver targeted 40% gross margin for FY25 FY25 outlook maintained • Q1 FY25 gross margin % was 40.3% up 240 bps vs FY25 pro forma NPAT expected to be in the range of pcp of 37.9% dr
Slide 18: Appendix
Appendix 2024 Annual General Meeting 18
Slide 19: Statutory to Pro Forma Income Statement Reconciliation
Appendix One Statutory to Pro Forma Income Statement Reconciliation FY24 FY23 Pro forma financial results have been calculated to Add Add exclude the following items (refer Directors’ Report Statutory Pro Forma Pro Forma Statutory Pro Forma Pro Forma (dated 20 August 2024) for further detail): $ mil
Slide 20: Pro Forma Income Statement
Appendix Two Pro Forma Income Statement AASB 16 Transition Impact FY24 FY23 Reversal of Reversal of AASB 16 Add Operating AASB 16 Add Operating Pro Forma Depreciation Lease Pre-AASB 16 Pro Forma Depreciation Lease Pre-AASB 16 $ million FY24 and Interest Expenses FY24 FY23 and Interest Expenses FY23
Slide 21: Long Term EBITDA Growth
Returning to growth Grow EBITDA Long Term EBITDA Growth Cost of Doing Business initiatives Clear path to achieve Lowering our variable costs historical EBITDA margins • Supply Chain efficiencies ~10% • Customer Care productivity 10% EBITDA margin achieved in FY22 through improvement and in-housing t
Slide 22: Optimise and grow store network
Returning to growth Grow Return on Invested Capital Small format store pilots expected to Optimise and grow store network Small format be in market Q4 FY25 followed by a period of testing Expanding the store network into new catchments and stores will enable and assessment opportunity to meeting mor
Slide 23: Large format stores deliver great returns
Large format stores deliver great returns 25% of stores are in their growth phase with new store roll out to come Mature Metro Stores (>4 yr) • FY2022 was the historical high watermark in Metro Australia FY2020 FY2022 FY2024 terms of sales productivity Revenue per store ($m) 7.8 8.5 7.2 • Mature sto
Slide 24: Glossary
Glossary Comparable Store Sales Calculated as a percentage change of the total sales generated from stores (including the online store) Growth in a relevant period, compared to the total sales from the same set of stores in the prior financial year, provided the stores were open at the beginning of
Baby Bunting Group — Shareholder Meeting (October 2024) on 6ix