Bubs Australia Ltd. · ASX:BUB
Bubs Australia — Shareholder Meeting (November 2023)
37 slides from Bubs Australia's shareholder meeting presentation, Nov 14, 2023
Slide 1: CEO Presentation
For personal use only CEO PRESENTATION
Slide 2: Disclaimer
DISCLAIMER This presentation is in summary form and is not necessarily complete. It should be read together with the Company’s other For personal use only announcements lodged with the Australian Securities Exchange. This presentation contains information that is based on projected and/or estimated
Slide 3: Summary FY23 Results
For personal use only SUMMARY FY23 RESULTS
Slide 4: Financial Overview
FINANCIAL OVERVIEW Revenue down 32.4% from prior comparative period $ million FY23 FY22 (“pcp”) due to a reduction in China revenue. Fall in China Underlying revenue1 60.1 93.5 revenue partially offset by growth in USA and domestic markets Underlying gross margin1 17.9 28.1 For personal use only U
Slide 5: FY23 Adjusted Revenue Bridge
FY23 ADJUSTED REVENUE BRIDGE Bubs’ strategic pivot to the USA has partially offset a decline in China revenue, with all other key markets experiencing growth from the core product range1 For personal use only 1 Non-IFRS measure, adjusted revenue calculation excludes Bulk and Raw Milk sales which are
Slide 6: Strategy Update
For personal use only UPDATE STRATEGY
Slide 7: Strategy Update
STRATEGY UPDATE Bubs 5-point plan to responsibly manage capital and maximize shareholder value For personal use only 1 2 3 4 5 USA CHINA PORTFOLIO SWEAT THE WORKING GROWTH RESET OPTIMISATION ASSETS CAPITAL ENGINE GROW & MAXIMISE SHAREHOLDER VALUE 7
Slide 8: 1. USA Growth Engine
For personal use only ENGINE 1. USA GROWTH
Slide 9: USA Growth Engine
For personal use only USA GROWTH ENGINE 9
Slide 10: For personal use only
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Slide 11: US Revenue Split by Channel
US REVENUE SPLIT BY CHANNEL Amazon contributed 54% of Bubs’ weekly US revenue by the end of October 2023 For personal use only Revenue Split by Channel (w/e 8 Jan 2023)1 Revenue Split by Channel (w/e 29 Oct 2023)1 7% 17% 24% US$401k 39% US$705k 54% 59% Amazon Bricks and Mortar Other Total weekly r
Slide 12: US Volume Growth
US VOLUME GROWTH For personal use only Nb. Data does not include D2C, Rite Aid, Buy Buy Baby or Thrive = c Max +10%
Slide 13: US Growth in Demand Has Outstripped Supply
US GROWTH IN DEMAND HAS OUTSTRIPPED SUPPLY Weekly USA Revenue & Tins Sold1 For personal use only $800 18,000 $700 16,000 14,000 $600 12,000 $500 Tins Sold US$'000 10,000 $400 8,000 $300 6,000 $200 4,000 $100 2,000 $0 0 Revenue (LHS) Tins Sold (RHS)
Slide 14: American Academy of Pediatrics Conference
AMERICAN ACADEMY OF PEDIATRICS CONFERENCE For personal use only
Slide 15: Regulatory Pathway
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 For personal use only May 2022: FDA exercised July 2022: FDA announces Dec 2022: FDA issues Bubs a Enforcement Discretion for Bubs can sta
Slide 16: For personal use only
For personal use only
Slide 17: Regulatory Costs
REGULATORY COSTS End to end costs associated with FDA regulatory approval estimated at ~$9M For personal use only ~$9M
Slide 18: 2. China Reset
For personal use only 2. CHINA RESET
Slide 19: China Reset
CHINA RESET Despite a slow start to the year, we expect China to grow strongly in H2 For personal use only
Slide 20: China Reset
CHINA RESET New & improved formulas, refreshed packaging, innovation and gifting For personal use only
Slide 21: China Reset
CHINA RESET Bubs and Caprilac brand position strengthened and now recovering as demonstrated through “11.11” sales event For personal use only Bubs and Caprilac Tmall Flagship Store Operation optimization for sustainable growth Increasing penetration and leading the GMV results during 24th Oct. – 9t
Slide 22: CIIE – China International Import Exhibition
CIIE – CHINA INTERNATIONAL IMPORT EXHIBITION For personal use only
Slide 23: CIIE – China International Import Exhibition
CIIE – CHINA INTERNATIONAL IMPORT EXHIBITION Bubs team at CIIE Clients and government officials visit at booth For personal use only
Slide 24: Portfolio Optimisation
PORTFOLIO OPTIMISATION For personal use only
Slide 25: Portfolio Optimisation
PORTFOLIO OPTIMISATION New 20oz tin size for the US and new and improved formula for Caprilac For personal use only
Slide 26: Portfolio Optimisation
PORTFOLIO OPTIMISATION Old New For personal use only
Slide 27: Portfolio Optimisation
PORTFOLIO OPTIMISATION Old New For personal use only
Slide 28: Sweat the Asset
For personal use only ASSET SWEAT THE
Slide 29: Sweat the Asset
SWEAT THE ASSET 2nd shift now required to meet demand. For personal use only Deloraine utilisation % 100% 80% 69% 60% 40% 20% 31% 0% FY23 Utilisation Headroom
Slide 30: Working Capital & Cost Discipline
WORKING CAPITAL & COST DISCIPLINE For personal use only
Slide 31: Working Capital and Cost Discipline
WORKING CAPITAL AND COST DISCIPLINE Q1 FY24 operating cash outflow reduced to $4.4m For personal use only Q1 Cash burn 44% lower vs pcp Monthly cash burn down to $1.5m (target was $2.0m) Cost out program and right-sizing initiatives well underway Non-recurring costs to Sep-23 include FDA regulatory
Slide 32: FY24 Q1 Performance
For personal use only FY24 Q1 PERFORMANCE
Slide 33: FY24 Q1 Performance
FY24 Q1 PERFORMANCE FY24 has started very strongly with continued growth in all markets excluding China For personal use only GROSS SALES PORTFOLIO MARKET SHARE BALANCE SHEET $24.3m $17.5m IMF No1 Goat Brand $21.6m cash +21.7% VS. Q4 FY23 +41% VS. pcp1 Australia & USA Plus $8m undrawn debt USA $11.6
Slide 34: FY24 Q1 Group Financial Review
FY24 Q1 GROUP FINANCIAL REVIEW Growing revenue versus pcp for USA, Australia & Rest of World use only Group Revenue Q1 FY24 Product Mix USA now represents 48% of Group revenue Infant formula contributed 83% of gross revenue 2% 12 11 10 For personal 15% 9 8 $ millions 7 6 5 4 3 83% 2 1 - Domestic Chi
Slide 35: Outlook
OUTLOOK Forecast net revenue $80M - Tracking above forecast Targeted gross margin @ 40% - Broadly in-line on an underlying For personal use only basis Continued FDA Progress - On track with final stage clinical trial underway Expected cash burn reduced from $5m per month to $2m per month fro
Slide 36: The Bubs Investment Proposition
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. For personal use only Differentiated premium goat- $100B+ global addressable based product offering supported market wit
Slide 37: Thank You
For personal use only THANK YOU