Baby Bunting Group Ltd. · ASX:BBN

Baby Bunting — FY2026 Earnings Presentation

37 slides from Baby Bunting's earnings presentation, Aug 14, 2026

  1. Slide 1: Strategy delivering, margin at a record high

    Strategy delivering, margin at a record high FY26 Investor Presentation Mark Teperson Chief Executive Officer Darin Hoekman Chief Financial Officer 14 August 2026

  2. Slide 2: Important notice and disclaimer

    Important notice and disclaimer Forward looking statements Pro forma financial information This document is a presentation of This document contains certain forward looking statements and Pro forma financial results have been calculated to general background information about comments about future e

  3. Slide 3: The best start for the brightest

    Our Vision Our Mission The best To support & inspire start for confident parenting, the brightest from newborn future to toddler 3

  4. Slide 4: Our extraordinary team

    Our Team Our extraordinary team Aligning purpose with performance 4

  5. Slide 5: Results Summary

    Results Summary FY26 Investor Presentation Mark Teperson Chief Executive Officer 5

  6. Slide 6: FY26 results summary

    Results Summary FY26 results summary Record sales & gross margin delivering Pro Forma1 NPAT growth of 33.9% Total Sales Store of the Future Gross Margin $556.0m Sales growth2 18% vs pcp 41.2% up 6.5% vs pcp Target range 15% - 25% up 100 bps vs pcp comp growth up 3.5% vs pcp 15 refurbished stores3 op

  7. Slide 7: Key financial metrics & trends

    Results Summary Key financial metrics & trends Total Sales Gross Profit Sales ($m) Gross Profit ($m) 580.0 16.0 % 556.0 240.0 229.2 45.0% 560 .0 Comp Growth % GP % 209.7 44.0 % 521.9 11.0% 220 .0 540.0 515.8 195.8 43.0% 507.3 192.9 498.4 183.7 520.0 200.0 42.0% 6.0 % 500 .0 41.0% 180.0 5.0% 41.2% 4.

  8. Slide 8: Operating highlights

    Results summary Operating highlights Store network transformation continues at pace Network Gross margin Operating expansion & new revenue leverage • 12 Store of the Future • First full year of • Existing store labour refurbishments completed1, BabyBuntingMedia, generating leveraged to service growi

  9. Slide 9: Financial Summary

    Financial Summary FY26 Investor Presentation Darin Hoekman Chief Financial Officer 9

  10. Slide 10: Record sales performance

    Financial summary Record sales performance New store formats and more ways to shop driving sales growth Total Sales 580.0 16.0 % Comparable store sales growth Store of the Future 556.0 up 3.5 up 18 % % 560 .0 Sales ($m) 521.9 11.0% 540.0 515.8 Comp growth % 507.3 498.4 520.0 6.0 % 500 .0 1H: 4.7%, 2

  11. Slide 11: Gross margin expansion

    Financial summary Gross margin expansion Two consecutive years of record gross margins achieved, up +440 bps vs FY24 Gross Profit 240.0 229.2 44.0 % 209.7 Gross margin Gross profit $ growth 41.2% up 9.3 Gross profit 220 .0 % 195.8 42.0% ($m) 192.9 183.7 200.0 Gross margin 41.2% 40 .0 % % 40.2% 180.0

  12. Slide 12: Profit & loss

    Financial summary Profit & loss Record sales, gross margin uplift and CODB leverage driving EBITDA margin expansion of 140 bps Pro Forma Pro Forma Commentary $ million FY26 FY25 Change Sales 556.0 521.9 +6.5% Comp growth % +3.5% +4.2% Total sales of $556.0m, up 6.5% vs pcp, driven by comparable Cost

  13. Slide 13: Cost of doing business leverage

    Financial summary Cost of doing business leverage 1 % of sales 26.0% 23.0% 23.3% 23.2% 24.0% 20.8% Commentary 19.0% 22.0 % expenses 20.0% CODB1 $191.6m, increased by $10.1m vs pcp (now 34.5% of sales): 18.0% Store 16.0 % • Store expenses up $7.0m driven by 6 new stores and 2 annualising stores 14.0%

  14. Slide 14: Financial position

    Financial summary Financial position Well funded to support growth plans Statutory Statutory Commentary $ million FY26 FY25 Cash & cash equivalents 13.0 12.4 Inventory well managed closing at $99.2m, reflecting six new stores in Inventories the network. Ageing and quality of stock continues to impro

  15. Slide 15: Cash flow

    Financial summary Cash flow Operating cash flow of $36.2m, 19 significant capital growth projects undertaken Commentary $ million FY26 FY25 EBITDA1 37.6 28.2 Cash conversion ratio at 96.4% (including YoY timing benefit Movement in working capital 2.3 1.3 of tax payable) Tax Paid (3.7) (6.4) Investme

  16. Slide 16: Strategy Update

    Strategy Update FY26 Investor Presentation Mark Teperson 16

  17. Slide 17: Growth plan

    Strategy Update • Extend category leadership – Growth 1 Grow Lead the category • Grow the network – plan Market share • Own the parenting journey – Baby Bunting is the leading • Expand gross margin beyond 43% specialist baby retailer in Australia and New Zealand – 2 Turn scale • Build differentiated

  18. Slide 18: How the strategy compounds

    Strategy Update How the strategy compounds Margin & leverage improve the economics, refurbishments and new stores grow the sales base Improve the economics Grow the sales base Clear pathway to +10% EBITDA4 margin Gross margin1 Growth Growthfrom fromrefurbs refurbs2 +10% +600 bps 15-25% 6.8% Medium F

  19. Slide 19: Focus areas for FY27

    Financial summary Focus areas for FY27 Growth objectives FY27 Targets1 FY27 Deliverables Total Sales Grow active customers 1 $585m - $600m Customer Build PLEX portfolio Grow Experience Market Comp Sales share 3%-5% Lead product innovation and availability Expand gross margin 2 Gross Margin Platform

  20. Slide 20: Grow active customers

    Grow market share Customer Experience Grow active customers Continue to drive customer acquisition in a large addressable market opportunity New store formats, exclusive ranges and expanded online delivery Customer momentum underpins FY27 growth targets options driving new customer acquisition and i

  21. Slide 21: Build the PLEX portfolio

    Grow market share Customer Experience Build the PLEX portfolio Deepening our Exclusive Brand Underpins product differentiation and drives margin expansion partnerships & Private Label • Superior gross margin on PLEX Exclusive Brands New in FY26 • Commitment on retail media spend from brand partners

  22. Slide 22: Lead product innovation and availability

    Grow market share Customer Experience Lead product innovation and availability Range differentiation and availability underpinning market share growth Lead core & growth categories • New & exclusive product ranges driving customer acquisition • New & exclusive product pipeline: first to market for r

  23. Slide 23: Expand gross margin

    Grow EBITDA Platform Leverage Expand gross margin Targeting 42% gross margin in FY27 +43% 42% 42.0% 0.5% 0.1% 41.2% 0.5% 1.5% 1.8% 36.8% FY24 Trading Simplify price Exclusive Retail Supply FY26 FY27 margin FY27 Medium margin terms architecture brands Media Chain margin initiatives target target Rene

  24. Slide 24: Move New Zealand to break-even

    Grow EBITDA Platform Leverage Move New Zealand to break-even $1.1bn market opportunity with break-even anticipated in FY27 and the network still to scale Earnings accretive from FY28 & beyond New Zealand Profit After Tax1 (AUD) as network scales Commentary 5 stores and online delivering sales of $19

  25. Slide 25: Improve operating leverage

    Grow EBITDA Platform Leverage Improve operating leverage Driving leverage through labour productivity, offshore consolidation & embedding AI Labour Offshore Artificial productivity consolidation intelligence Fair Work wage increase of 4.75% Transition to offshore consolidation Two frontiers: leverag

  26. Slide 26: Refurbishing the store network

    Grow return on invested capital Capital Discipline Refurbishing the store network Plans in place for further build cost reductions in FY27 Returns improve as costs fall $1.7m • Refurbished stores delivered an 18% sales uplift in FY26 Gross margin ahead of peer stores $1.5m • per store • Payback main

  27. Slide 27: Deploy growth capital

    Grow return on invested capital Capital Discipline Deploy growth capital Disciplined investment in new stores, digital and core systems New store pipeline Digital investment Core systems Australia Brandon Park (Vic) 160 .0 40 .0 % Network Online Sales ERP/POS Ballina (NSW) 140.5 plan LFS delivering

  28. Slide 28: Well-funded to support growth plans

    Grow return on invested capital Enhance Working Capital Well-funded to support growth plans Operating cash flow continues to improve, with FY27 capex guided lower at $33m–$37m $36.2m Operating cash flow vs capital expenditure FY26 capital expenditure of $m, pre AASB 16 $44.5m was funded from $36.2m

  29. Slide 29: Trading update & outlook

    Trading update & outlook FY26 Investor Presentation Mark Teperson Chief Executive Officer 29

  30. Slide 30: FY27 Outlook

    Outlook FY27 Outlook FY27 trade update Outlook First 6 weeks of trade to 9 August is +6.1% total sales growth and The next scheduled trading update will be at the AGM (13 October 2026). We +4.3% comparable sales growth1 expect comparable store sales growth to moderate as we ramp-up the first half re

  31. Slide 31: Appendices

    Appendices FY26 Investor Presentation 31

  32. Slide 32: Statutory to Pro Forma Income Statement Reconciliation

    Appendix One Statutory to Pro Forma Income Statement Reconciliation FY26 FY25 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 14 August 2026 for further detail): $ milli

  33. Slide 33: Pro Forma Income Statement

    Appendix One Pro Forma Income Statement AASB 16 Transition Impact FY26 FY25 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 FY26 and Interest Expenses FY26 FY25 and Interest Expenses FY25

  34. Slide 34: Market opportunity

    Strategy Update Market opportunity $6.3bn ANZ market with significant growth runway 1.1 $ Strategy to accelerate market share growth; incremental 1% Total market size Bn Our core competency The opportunity in soft goods By region New Zealand gain equates to ~$34m revenue. • Leverage market leadershi

  35. Slide 35: Optimise and grow store network

    Our network growth Optimise and grow store network Expanding the store network into new catchments and meeting more needs of parents through new store formats • Network plan developed with Network plan LFS assistance of third-party 110 4 demographer. Inputs include ABS + spend, market share data, Au

  36. Slide 36: Large format stores deliver great returns

    Store Economics Large format stores deliver great returns Store of the Future format delivering superior returns • Mature store cohort of 50 metro stores of a total metro Historical returns from our AU store network network of 61 and regional store cohort of 6 regional stores Mature Metro Stores (>4

  37. Slide 37: Glossary

    Glossary Comparable Store Sales Growth Calculated as a percentage change of the total sales generated from stores (including the online store) 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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