Bubs Australia Ltd. · ASX:BUB
Bubs Australia — H1 FY2025 Earnings Presentation
40 slides from Bubs Australia's earnings presentation, Feb 28, 2025
Slide 1: Bubs Australia Limited 1H FY25 Results Presentation
rsonal use only Bubs Australia Limited 1H FY25 Results Presentation 28 February 2025 Slide 1
Slide 2: Disclaimer
DISCLAIMER This presentation is in summary form and is not necessarily complete. It should be read together with the rsonal use only Company’s other announcements lodged with the Australian Securities Exchange. This presentation contains information that is based on projected and/or estimated expect
Slide 3: Contents
CONTENTS rsonal use only Section 1: 1H FY25 Financial Results Section 2: Strategy Update Section 3: Outlook & Pathway to Profitability Section 4: Investment Highlights Slide 3
Slide 4: Section 1: 1H FY25 Financial Results
rsonal use only Section 1: 1H FY25 Financial Results Slide 4
Slide 5: Key Messages
Key Messages • Strong 1HY25 Group Results with continued successful implementation of Bubs strategic plan. rsonal use only • Statutory NPAT of $3.6m, improved $11.2m compared to 1HY24. • EBITDA1 of $0.5m improved $7.5m compared to 1HY24. • Significant improvement in 1HY25 net cash used in operating
Slide 6: 1H FY25 Performance
1H FY25 Performance Delivering on FY25 strategic priorities rsonal use only Revenue Gross Margin EBITDA Portfolio Balance Sheet $48.5m 50% $0.5m $41.8m IMF $17.2m cash +23% vs. H1 FY241 Exceeding target for Up from a $(7.0)m +41% VS. pcp +$5m undrawn debt FY25 of 40% EBITDA2 loss in PCP US
Slide 7: Financial Overview
Financial Overview $’m 1HFY25 1HFY24 Revenue 48.5 39.4 Revenue up 23% from prior corresponding period rsonal use only (“pcp”) driven by strong customer demand and growth Gross margin 24.4 19.2 in all markets. USA comprised 48% of Bubs’ revenue in H1 FY24 (+28% in pcp). Gross margin (%) 50% 49% Gross
Slide 8: Balance Sheet
Balance Sheet $’m Dec-24 Jun-24 Net assets increased $2.1m to $38.7m at Cash and cash equivalents 17.2 17.5 Dec-24. rsonal use only Trade and other receivables 10.7 9.3 Inventories 30.3 28.2 Cash and cash equivalents balance of Other current assets 4.7 4.5 $17.2m at Dec-24, $0.3m lower than Jun-24 C
Slide 9: Cash Flow
Cash Flow $'m Dec-24 Dec-23 Net cash used in operating Cash flows from operating activities activities reduced to $0.5m, an rsonal use only Receipts from customers 46.7 38.0 improvement of $11.6m over pcp. Payments to suppliers ,employees and government (47.1) (50.3) Interest received 0.2 0.1 Receip
Slide 10: 1HY25 Gross Margin
1HY25 Gross Margin Gross margin of 50% rsonal use only Gross Margin Gross margin at 50% for the half 49% 50% reflects Bubs’ premium brand and market positioning, improved 38% inventory management, higher margin new pack formats in the US, lower ingredient & packaging costs and favourable currency mo
Slide 11: Revenue Streams
Revenue Streams 86% of Bubs’revenue is derived from the sale of high margin infant formula products, with Goat IMF representing 67% of total IMF revenue rsonal use only 1% 3% 1% 1% 1% 6% 8% 12% 16% 4% 1% 15% 3% 26% 3% 84% 86% 75% 55% 1HF22 1HF23 1HF24 1HY25 Infant Formula Nutritional products Adult
Slide 12: Section 2: Strategy Update
rsonal use only Section 2: Strategy Update Slide 12
Slide 13: Bubs Strategy
Bubs Strategy Bubs’ 5-point plan to responsibly manage capital and maximise shareholder value rsonal use only 1 2 3 4 5 USA Growth China Portfolio Sweat the Working Engine Reset Optimisation Assets Capital Grow & Maximise Shareholder Value Slide 13
Slide 14: 1HY25 Progress To Date
1HY25 Progress To Date FY25 will see Bubs continue to work towards its strategic priorities outlined in the 5-point strategic plan, and target cash flow break even in FY25 rsonal use only Strategic Priority Progress 1 Revenue of $102m (up c.28% YOY) On track to meet guidance On track, achieved gro
Slide 15: USA Growth Engine
USA Growth rsonal use only Engine Slide 15
Slide 16: USA Contributed 48% of Revenue in 1H FY25
USA Contributed 48% of Revenue in 1HY25 In Q4 FY24 Bubs rolled out new look labels and new pack formats in USA. USA contributed 48% of total revenue in 1HY25, up from 46% in 1HY24. Total USA revenue in rsonal use only 1HY25 was $23.2m, a 28% increase on pcp. Bubs continues to work with the FDA
Slide 17: USA IMF Market Performance
USA IMF Market Performance Total USA IMF market size is $5.5b1 Total powder (non liquid/RTF) market size is $5.04b, rsonal use only and is growing at 6% MAT Premium / Natural - Competitors Premium / natural IMF market size is $420m and growing at 47% MAT Bubs holds 10% share of premium / natur
Slide 18: USA Growth Engine
USA Growth Engine Total USA revenue of $23.1m in 1H FY25, a 28% increase from H1 FY24. USA Quarterly Scan Sales1 rsonal use only Over 640,000 tins sold in H1 FY251. 12 350 Roll out of new pack formats impacted H1 sales, however old formats have now been fully sold out 300 in marketplace allowi
Slide 19: Regulatory Pathway
Regulatory Pathway Bubs remains on track for permanent FDA approval by Oct-25, providing access to the worlds 2nd largest IMF market and is poised to deliver a long rsonal use only runway of sustainable growth FDA Transition Guidance & Regulatory Pathway May 2022: FDA exercised July 2022: FDA announ
Slide 20: FDA Process Update & Growth Monitoring Study
FDA Process Update & Growth Monitoring Study At the end of Q2 FY25, Bubs finalised its infant enrolment for the growth monitoring study & clinical trial, a triple headed trial and one of the largest IMF trials ever undertaken. rsonal use only A total of 478 infants have been enrolled in the clin
Slide 21: China Reset
China Reset rsonal use only Slide 21
Slide 22: China Revenue
China Revenue Bubs expects to achieve full year revenue growth in FY25 of >40% compared with FY24 rsonal use only China Revenue + 45% $10.2m Brand awareness and confidence is continuing to build in the CBEC channel, and Bub’s is continuing to successfully penetrate the O2O sales channel where we now
Slide 23: China CBEC Channel
China CBEC Channel Strong sales momentum and consumer confidence has been restored in the CBEC channel rsonal use only Bubs GMV in China major CBEC Within China’s major CBEC channel, the channel total IMF category grew by +10% GMV in 1HY25 compared to 1HY24. + 60% $4.2m $2.6m However, within the IMF
Slide 24: China Channel Strategy
China Channel Strategy New channel expansion – China O2O business overview In July 2024, Bubs refocused its efforts on China’s O2O channel. Store numbers have grown by over 700 from Jun-24 to 1,050 by rsonal use only the end of January 2025. Among those strong regions, sales velocity of Bubs Goat IM
Slide 25: China Update
China Update Bubs continues to grow strongly and profitably in China within its premium niche rsonal use only • A strong brand portfolio to build on: Goat, Supreme & Caprilac • Premium price architecture restored >20% increase in average RRP • A healthy portfolio gross profit margin >37% • Focused t
Slide 26: Portfolio Optimisation
Portfolio rsonal use only Optimisation Slide 26
Slide 27: Portfolio Optimisation
Portfolio Optimisation Bubs is a global leader in infant & adult goat nutrition, with an estimated market size of A$4.5bn1 rsonal use only Strategic Priority Update 1 New look packaging and formulations for US Hero Brands – Bubs and Caprilac and China in FY24 2 Repositioning of Organic and Bubs A2 E
Slide 28: Sweat The Assets
Sweat The rsonal use only Assets Slide 28
Slide 29: Sweat The Assets
Sweat The Assets Average Deloraine utilisation at 79% in 1HY25 based on a double shift operating 5 days per week, with significant headroom to support increased demand rsonal use only Deloraine Utilisation1 Daily production capacity doubled in FY24 from 12,500 to 25,000 tins. 84% 79% Average YTD
Slide 30: Working Capital
Working rsonal use only Capital Slide 30
Slide 31: Working Capital
Working Capital Bubs achieved positive operating cash flow of $3.9m in Q2 FY25 rsonal use only Quarterly Cash Burn Working capital 4 Bubs demonstrated improved working capital 2 management in 1H FY25, with total net decrease - in cash of $0.3m from Jun-24 to Dec-24. (2) The improvement in 1H FY25 wa
Slide 32: Australia Update
Australia rsonal use only Update Slide 32
Slide 33: Australia
Australia Growth MAT1 15% 12% 12% rsonal use only 10% #1 goat formula in Australia 5% 4% 2% 0% 0% Bubs remains the clear market leader -5% in the domestic goat formula IMF, -4% holding a record 55% market share1. -10% -11% -15% Market Company Company Company Company Company Bubs Bubs is one of the f
Slide 34: Rest of World Update
Rest of World rsonal use only Update Slide 34
Slide 35: Year ROW Revenue Performance
3 Year ROW Revenue Performance ROW Revenue ($’m) rsonal use only 25% CAGR 4.6 3.0 2.5 1H FY23 1H FY24 1H FY25 85% revenue growth in ROW from 1HY24 to 1HY25, driven by strong performances from the Japan and Vietnam markets. We are currently developing our optimal market entry strategy for Canada
Slide 36: Section 3: Outlook & Pathway to Profitability
rsonal use only Section 3: Outlook & Pathway to Profitability Slide 36
Slide 37: FY25 Outlook
FY25 Outlook What to expect in FY25 Revenue of $102m (up ~28% YOY) rsonal use only Continued gross margin expansion to approx. 45%, upgrade from 40% at start of financial year Clinical study (GMS) FDA submission end of June 2025, FDA approval anticipated in October 2025 Cash Flow Positive in
Slide 38: Section 4: Investment Highlights
rsonal use only Section 4: Investment Highlights Slide 38
Slide 39: 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. rsonal use only Differentiated premium goat- US $100B+ global based product offering addressable market with a 5- suppor
Slide 40: Thank you
rsonal use only Thank you investors@bubsaustralia.com Slide 40