Bubs Australia Ltd. · ASX:BUB
Bubs Australia — H1 FY24 Earnings Presentation
36 slides from Bubs Australia's earnings presentation, Feb 26, 2024
Slide 1: H1 FY24 Results Presentation
H1 FY24 Results Presentation | 26 February 2024 H1 FY24 Results Presentation rsonal use only 26 February 2024 Slide 1
Slide 2: Disclaimer
H1 FY24 Results Presentation | 26 February 2024 DISCLAIMER This presentation is in summary form and is not necessarily complete. It should be read together with the Company’s other announcements lodged with the Australian Securities Exchange. rsonal use only This presentation contains information th
Slide 3: Contents
H1 FY24 Results Presentation | 26 February 2024 Contents rsonal use only Section 1: H1 FY24 Financial Results Section 2: Strategy Update Section 3: Investment Highlights Section 4: Outlook Section 5: Appendix Slide 3
Slide 4: Section 1: H1 FY24 Financial Results
H1 FY24 Results Presentation | 26 February 2024 rsonal use only Section 1: H1 FY24 Financial Results Slide 4
Slide 5: Performance
H1 FY24 Results Presentation | 26 February 2024 H1 FY24 PERFORMANCE Delivering on FY24 strategic priorities rsonal use only GROSS GROSS BALANCE OPEX ratio PORTFOLIO REVENUE MARGIN SHEET $49.2m 38% 53% $29.5m IMF $27.4m cash +30% vs. H1 FY231 +3% vs. H1 FY232 53% vs. 78% in H1 FY233 +12% VS. pcp4 +$9
Slide 6: Financial Overview
H1 FY24 Results Presentation | 26 February 2024 FINANCIAL OVERVIEW $’m 1HFY24 1HFY23 Revenue up 25% from prior corresponding period (“pcp”) Gross revenue1 49.2 37.9 driven by strong customer demand and growth in USA and rsonal use only Revenue 39.4 31.5 Australia. USA comprised 46% of Bubs’ revenu
Slide 7: Balance Sheet
H1 FY24 Results Presentation | 26 February 2024 BALANCE SHEET $’m Dec-23 Jun-23 Cash and cash equivalents 27.4 26.1 Cash and cash equivalents balance of $27.4m at Dec-23. rsonal use only Trade and other receivables 15.0 7.9 Inventories 22.8 20.8 Trade and other receivables increased to $15.0m, O
Slide 8: Underlying Gross Margin of 38%
H1 FY24 Results Presentation | 26 February 2024 UNDERLYING GROSS MARGIN OF 38%1 Focusing on the core product range enabled Bubs’ to deliver a 38% underlying gross margin1 rsonal use only Underlying gross margin1 increased in H1 FY24 driven by improved inventory management, together with geographic
Slide 9: Revenue Streams
H1 FY24 Results Presentation | 26 February 2024 REVENUE STREAMS 75% of Bubs’ revenue is derived from the sale of higher margin infant formula rsonal use only 2% 1% 2% 1% 1% 6% 9% 15% 11% 5% 15% 3% 36% 22% 2% 4% 81% 75% 60% 49% FY21 FY22 FY23 1H FY24 Infant formula Nutritional products Adult formula
Slide 10: Section 2: Strategy Update
H1 FY24 Results Presentation | 26 February 2024 rsonal use only Section 2: Strategy Update Slide 10
Slide 11: Strategy Update
H1 FY24 Results Presentation | 26 February 2024 STRATEGY UPDATE Bubs’ 5 point plan to responsibly manage capital and maximise shareholder value rsonal use only 1 2 3 4 5 USA CHINA PORTFOLIO SWEAT THE WORKING GROWTH RESET OPTIMISATION ASSETS CAPITAL ENGINE GROW & MAXIMISE SHAREHOLDER VALUE 11 Slide 1
Slide 12: FY24 Progress to Date
H1 FY24 Results Presentation | 26 February 2024 FY24 PROGRESS TO DATE FY24 will see Bubs continue to work towards its strategic priorities outlined in the 5-point strategic plan, and target cash flow breakeven in FY25 rsonal use only Strategic Priority Update 1 Forecast net revenue of $80m Tracking
Slide 13: USA Growth Engine
H1 FY24 Results Presentation | 26 February 2024 rsonal use only USA GROWTH ENGINE Strategy Update Slide 13
Slide 14: USA Growth Engine
H1 FY24 Results Presentation | 26 February 2024 USA GROWTH ENGINE rsonal use only 14 Slide 14
Slide 15: USA Penetration
H1 FY24 Results Presentation | 26 February 2024 USA PENETRATION Bubs products are ranged in over 5,800 physical stores across 42 states, in addition to e-commerce channels rsonal use only Slide 15
Slide 16: USA Growth Engine
H1 FY24 Results Presentation | 26 February 2024 $18.2m c. 85% revenue USA GROWTH ENGINE increase vs pcp Total USA revenue of $18.2m in H1 FY24, an 85% increase from Weekly USA Revenue & Tins Sold H1 FY23. rsonal use only $900 $800 20,000 #1 goat milk in the U.S, with over 400,000 tins sold in H1
Slide 17: USA Contributed 46% of Revenue in H1 FY24
H1 FY24 Results Presentation | 26 February 2024 USA CONTRIBUTED 46% OF REVENUE IN H1 FY24 USA continues to be Bubs’ most important region rsonal use only In FY22, Bubs strategically pivoted to focus on growth in the USA. USA contributed 46% of total revenue in H1 FY24, up from 40% in FY23. Total
Slide 18: Regulatory Pathway
H1 FY24 Results Presentation | 26 February 2024 REGULATORY PATHWAY Bubs is on track for permanent FDA approval by Oct-25, with the USA poised to deliver substantial growth via e-commerce and traditional retail rsonal use only May 2022: FDA exercised July 2022: FDA announces Dec 2022: FDA issues Bubs
Slide 19: Regulatory Costs
H1 FY24 Results Presentation | 26 February 2024 REGULATORY COSTS End to end costs associated with obtaining FDA regulatory approval estimated at c. $9.9M rsonal use only Actual Forecast Slide 19
Slide 20: China Reset
H1 FY24 Results Presentation | 26 February 2024 rsonal use only CHINA RESET Strategy Update Slide 20
Slide 21: China Revenue
H1 FY24 Results Presentation | 26 February 2024 CHINA REVENUE Bubs expects to achieve full year revenue growth in FY24 compared with FY23 rsonal use only Bubs’ China re-set strategy is well underway with two distributors appointed by Bubs to service the Chinese market in H1 FY24 China Revenue Th
Slide 22: Portfolio Optimisation
H1 FY24 Results Presentation | 26 February 2024 rsonal use only PORTFOLIO OPTIMISATION Strategy Update Slide 22
Slide 23: Portfolio Optimisation
H1 FY24 Results Presentation | 26 February 2024 PORTFOLIO OPTIMISATION Bubs is the global leader in infant & adult goat nutrition, with an estimated market size of A$4.5bn1 rsonal use only Strategic Priority Update 1 Hero Brands – Bubs and Caprilac New look packaging for US and China in Q4 2 Premium
Slide 24: Market Leader in Goat Formula in Australia
H1 FY24 Results Presentation | 26 February 2024 MARKET LEADER IN GOAT FORMULA IN AUSTRALIA Bubs holds 52% of the domestic goat IMF1 rsonal use only $5,000 Bubs Quarterly Revenue & Market Share (%)1 6% 5.3% 52% $4,000 5% market market 4% share of AU share of $3,000 IMF1 goat IMF1 A$’000 3% $2,000 2%
Slide 25: Sweat the Assets
H1 FY24 Results Presentation | 26 February 2024 rsonal use only SWEAT THE ASSETS Strategy Update Slide 25
Slide 26: Sweat the Assets
H1 FY24 Results Presentation | 26 February 2024 SWEAT THE ASSETS Bubs has commenced a second production shift at Deloraine, increasing utilisation to 70% rsonal use only Capital raising conducted in Nov-23 enabling Bubs to Deloraine Utilisation expand production to pursue growth. Second shift pr
Slide 27: Working Capital
H1 FY24 Results Presentation | 26 February 2024 rsonal use only WORKING CAPITAL Strategy Update Slide 27
Slide 28: Working Capital & Cash Flow
H1 FY24 Results Presentation | 26 February 2024 WORKING CAPITAL & CASH FLOW Bubs expects it will be cash flow positive with positive trading EBITDA in FY25 rsonal use only Cash Burn in H1 FY24 Management target cash burn is $2.0m per month from Q2 FY241 for FY24. Actual average monthly cash burn
Slide 29: Section 3: Investment Highlights
H1 FY24 Results Presentation | 26 February 2024 rsonal use only Section 3: Investment Highlights Slide 29
Slide 30: The Bubs Investment Proposition
H1 FY24 Results Presentation | 26 February 2024 THE BUBS INVESTMENT PROPOSITION Bubs is a global market leader with a differentiated premium goat-based product offering, operating in both the IMF and Adult Nutrition categories. rsonal use only Differentiated premium goat- US $100B+ global addressabl
Slide 31: Section 4: Outlook
H1 FY24 Results Presentation | 26 February 2024 rsonal use only Section 4: Outlook Slide 31
Slide 32: Outlook
H1 FY24 Results Presentation | 26 February 2024 OUTLOOK FY24 will see Bubs continue to work towards its strategic priorities outlined in the 5-point strategic plan, and target cash flow breakeven in FY25 rsonal use only GROUP STRATEGIC FOCUS With the business having reset after a disrupted FY23, the
Slide 33: Section 5: Appendix
H1 FY24 Results Presentation | 26 February 2024 rsonal use only Section 5: Appendix Slide 33
Slide 34: Statutory Net Loss Reconciliation
H1 FY24 Results Presentation | 26 February 2024 H1 FY24 STATUTORY NET LOSS RECONCILIATION Per Financial $’m Inventory Provision2 FDA Growth Study Legal Costs ERP Underlying outcome Statements Gross Revenue1 49.2 - - - - 49.2 Trade Spend1 (9.8) - (9.8) rsonal use only Revenue 39.4 (1.6) - - - 37.8 Co
Slide 35: H1 FY23 Statutory Net Loss Reconciliation
H1 FY24 Results Presentation | 26 February 2024 H1 FY23 STATUTORY NET LOSS RECONCILIATION Per Financial $’m Inventory Provision2 Impairment Underlying outcome Statements Gross Revenue1 37.9 - - 37.9 Trade Spend1 (6.4) - - (6.4) rsonal use only Revenue 31.5 - - 31.5 Cost of Sales (28.9) 8.4 (20.5) Gr
Slide 36: Thank you
H1 FY24 Results Presentation | 26 February 2024 rsonal use only Thank you investors@bubsaustralia.com Slide 36