Baby Bunting Group Ltd. · ASX:BBN
Baby Bunting — Investor Presentation (February 2025)
29 slides from Baby Bunting's investor presentation, Feb 18, 2025
Slide 1: 1H FY25 Investor Presentation
1H FY25 Investor Presentation Mark Teperson Chief Executive Officer Darin Hoekman Chief Finance Officer 18 February 2025 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: Our Vision and Mission: The best start for the brightest future
Our Vision Our Mission The best To support & start for inspire confident the brightest parenting, future from newborn to toddler FY25 Half Year Investor Presentation 3
Slide 4: 1H FY25 Financial Highlights
1H FY25 Financial Highlights Strategic initiatives driving positive earnings growth 1H FY25 results Disciplined capital management 2H FY25 trading update – First 7 weeks • Pro Forma1 NPAT $4.8m, up • Cash conversion from operations 63% • First 7 weeks Comp sales growth of 37% vs pcp • Inventory prod
Slide 5: 1H results and progress into 2H
1H results and progress into 2H Executing on our strategy and returning to growth 1H FY25 2H FY25 actions • Comp growth up from +0.6% (1 Jul-13 Oct) to +4.5% in Q2 • Newness flowing into 2H, across key categories, including car seats, • New customer acquisition up 12% vs pcp prams, highchairs Grow S
Slide 6: Financial Summary
Financial Summary FY25 Half Year Investor Presentation
Slide 7: Sales performance
Sales performance Total Sales $m Range innovation and new customer acquisition driving $254.9 $248.5 $254.4 sales growth $239.1 $217.3 • 1H comparable store sales growth of 2.2% with Q2 comp 23.8% Sales ($m) 22.3% 22.4% store sales growth of 4.5% Online (incl. C&C) % of • Range innovation driving sa
Slide 8: Gross margin performance
Gross margin performance Gross Margin $m On track to deliver our FY25 gross margin target of 40% $101.3 $93.9 $94.7 $92.5 $81.2 Strong progress made on gross margin initiatives through 1H with gross margin of 39.8%, up 260 bps vs pcp driven by: 39.3% 39.8% • Supplier trading terms re-set significant
Slide 9: Profit & loss
Profit & loss 1H FY25 Pro Forma Income Statement Pro Forma Pro Forma Commentary $ million 1H FY25 1H FY24 Change Sales 254.4 248.5 2.4% Comp growth % Total sales of $254.4m, up 2.4% vs pcp, driven 2.2% (7.0%) by comparable store sales growth of 2.2% Cost of sales (153.1) (156.0) (1.9%) Gross Profit
Slide 10: Financial position
Financial position $3.9m improvement in net debt from June 2024 Statutory Statutory Statutory Commentary $ million 1H FY25 FY24 1H FY24 Cash & cash equivalents 12.0 9.5 6.8 • Inventory well managed, $2.6m reduction Inventories 97.7 94.4 98.7 in comparable stores’ inventory offset by a Plant and equi
Slide 11: Cash flow
Cash flow Investment program fully funded from cash flow from operating activities Commentary $ million 1H FY25 1H FY24 EBITDA1 14.0 10.6 Cash conversion ratio in line with plan at 63% Movement in working capital (2.8) 4.3 noting the ~120% achieved in FY24 was driven by a Tax Paid (2.0) (0.9) materi
Slide 12: Strategy Update
Strategy Update FY25 Half Year Investor Presentation
Slide 13: Growth plan: Delivering shareholder value
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 the •
Slide 14: Our strategy: returning to growth
Our strategy: returning to growth Growth objectives Deliverables 1 Enhance Grow customer experience Market Market leading Exceptional Best-in-class Data & share products experiences services Analytics 2 Drive platform Grow leverage EBITDA Gross Margin Media New Zealand Operating business profitabili
Slide 15: Our Progress: Grow market share
Strategic Priorities Our Progress Growth objectives Deliverables 1 Enhance customer Grow experience Market Market leading Exceptional Best-in-class Data & products experiences services Analytics share New brands launched Store experience 1-on-1 personalised Requirements for new We presented our appo
Slide 16: Our Progress: Grow EBITDA
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 Launched initial Trading terms updated for Re-shaped our core We presented our Retail Media key NZ suppli
Slide 17: Our Progress: Return on invested capital
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 pilot store New inventory To be progressed in We pr
Slide 18: Strategic Horizons & Future Deliverables
Strategic Priorities Strategic Horizons & Future Deliverables Funded from operating cash flows Growth objectives Deliverables FY25 - H2 FY26 Flow newness in key categories: Product Innovation • Prams, Car Seats, Furniture • Scale New Product Pipeline • Feeding, Babywear, Toys • Optimise existing bra
Slide 19: Store of the Future
Store of the Future First store in Maribyrnong (VIC) anticipated to open in April 2025 FY25 Half Year Investor Presentation 19
Slide 20: Trading Update & FY25 Outlook
Trading Update & FY25 Outlook FY25 Half Year Investor Presentation
Slide 21: Trading Update & FY25 Outlook
Trading Update & FY25 Outlook Stabilising the business and returning to positive earnings growth 2H Trading update (first 7 weeks) Outlook • First 7 weeks Comp sales growth of FY25 outlook maintained 2.8%, cycling changed promotional FY25 pro forma NPAT expected to be in the range of offers vs pcp,
Slide 22: Appendix
Appendix FY25 Half Year Investor Presentation 22
Slide 23: Statutory to Pro Forma Income Statement Reconciliation
Appendix One Statutory to Pro Forma Income Statement Reconciliation 1H FY25 1H FY24 Pro forma financial results have been calculated to exclude the Add Add following items (refer Directors’ Report (dated 18 February Statutory Pro Forma Pro Forma Statutory Pro Forma Pro Forma 2025) for further detail
Slide 24: Pro Forma Income Statement
Appendix Two Pro Forma Income Statement AASB 16 Transition Impact 1H FY25 1H FY24 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 1H FY25 and Interest Expenses 1H FY25 1H FY24 and Interest
Slide 25: 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 26: 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 early FY26 followed by a period of testing Expanding the store network into new catchments and meeting stores will enable and assessment opportunity to
Slide 27: 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 28: 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 Key exclusive brands 1.5% on-boarded in 1H FY25 Significantly progressed 36.8% in 1H FY25 Achieved FY24 margin Simplify price Trad
Slide 29: 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 opened stores in the prior financial year, provided the stores were open at the beginn
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