Bubs Australia Ltd. · ASX:BUB
Bubs Australia — Investor Presentation (March 2024)
32 slides from Bubs Australia's investor presentation, Mar 27, 2024
Slide 1: ASX Presentation March 2024
rsonal use only ASX Presentation 27 March 2024 Slide 1
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 announcements lodged with the Australian Securities Exchange. rsonal use only This presentation contains information that is based on projected and/or estimated expect
Slide 3: Today's Presentation
Today’s Presentation rsonal use only • About Bubs • Investment Proposition, Thesis, Moat • Bubs Strategy & Strategic Pillars • Progress To Date & Outlook Slide 3
Slide 4: About Bubs
rsonal use only About Bubs Slide 4
Slide 5: About Bubs
▪ Founded in 2006 ▪ Listed on the ASX in 2017 rsonal use only ▪ Market Cap: ~$125M 1 ▪ Gross Revenue: ~$100M 2 ▪ Employees: 75 ▪ Key Markets: USA, China, Australia ▪ Product Categories: Infant Nutrition & Adult Nutrition ▪ Brands: Bubs, Caprilac, JBY 1. Market Cap as at 25/3/2024 2. Bubs internal fo
Slide 6: Key Infant Formula Markets
Key Infant Formula Markets rsonal use only $8.1b1 $40.4b2 Total U.S. infant Total China infant formula market formula market $0.3b3 Total AU infant formula market 1 Circana Weekly To 29/10/2023 Value Sales $'s Total US Multi-Outlet (Nb Excludes Online) Powder, RTD's, Electrolytes & Liquid Concentrat
Slide 7: Market Leader in Goat IMF in Australia
Market Leader in Goat IMF in Australia rsonal use only Bubs Quarterly Revenue & Market Share (%) 1 $5,000 6% 5.3% 52% $4,000 5% market market 4% share of AU share of $3,000 IMF1 A$’000 3% goat IMF1 $2,000 2% $1,000 1% $0 0% #1 GOAT FORMULA Value Sales (A$'000) Market Share (%) Market leader across C
Slide 8: Investment Proposition, Thesis, Moat
rsonal use only Investment Proposition, Thesis, Moat Slide 8
Slide 9: The Bubs Investment Proposition
The Bubs Investment Proposition rsonal use only US $100B+ global Differentiated premium goat- addressable market with a 5- based product offering 10% CAGR supported by growing bovine range in both IMF and Adult Nutrition Bubs has a capital light asset Bubs is growing rapidly in the base with signifi
Slide 10: Bubs Strategy
rsonal use only Bubs Strategy Slide 10
Slide 11: 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 PORTFOLIO CHINA SWEAT THE WORKING GROWTH OPTIMISATION RESET ASSETS CAPITAL ENGINE GROW & MAXIMISE SHAREHOLDER VALUE 11 Slide 11
Slide 12: H1 FY24 Performance
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 +$9.8m undrawn debt USA $24.5m + 102% pcp Improveme
Slide 13: USA Growth Engine
rsonal use only USA Growth Engine Slide 13
Slide 14: rsonal use only
rsonal use only Slide 14
Slide 15: rsonal use only
rsonal use only Slide 15
Slide 16: US Penetration
US Penetration Bubs products are ranged in over 5,800 physical stores across 42 states, in addition to e-commerce channels rsonal use only Slide 16
Slide 17: US Retailers
US Retailers rsonal use only 17 Slide 17
Slide 18: Bubs US sales by quarter since launch in 2022
Bubs US sales by quarter since launch in 2022 Total Scan USD$'s AMAZON & Bricks & Mortar Combined1 rsonal use only $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- Qtr to w/e 28/08/22 Qtr to w/e 27/11/22 Qtr to w/e 26/02/23 Qtr to w/e
Slide 19: Amazon Product Rankings
Amazon Product Rankings1 rsonal use only 1. Amazon US Website screen shot 18 March 2024 Slide 19
Slide 20: Regulatory Pathway
Regulatory Pathway rsonal use only May 2022: FDA exercised July 2022: FDA announces Dec 2022: FDA issues Bubs a Enforcement Discretion for Bubs can stay in the US Letter of Acknowledgement all 6 Bubs Formulas under Enforcement for Bubs to proceed with Discretion until 18 Oct 2025 permanent regulator
Slide 21: Regulatory Costs
Regulatory Costs End to end costs associated with obtaining FDA regulatory approval estimated at c. $9.9M rsonal use only Actual Forecast Slide 21
Slide 22: China Reset
rsonal use only China Reset Slide 22
Slide 23: China Reset
China Reset Despite a slow start to the year, we expect China to grow strongly in H2 rsonal use only ▪ New Leadership - Jackie Lin CHINA NET SALES ($million) GM China 60 Failed Distributor Strategy ▪ Terminated Willis and Alice 50 distribution agreements Other 6% ▪ Terminated China JV (SAMR) 40 ▪ Ap
Slide 24: Portfolio Optimisation
rsonal use only Portfolio Optimisation Slide 24
Slide 25: 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 Hero Brands – Bubs and Caprilac New look packaging for US and China in Q4 2 Premiumisation & Repositioning of Organic and Essential t
Slide 26: Sweat the Assets
rsonal use only Sweat the Assets Slide 26
Slide 27: Sweat The Assets
Sweat The Assets 2nd shift commenced to meet US demand. rsonal use only Deloraine Utilisation 30% 69% 70% 31% FY23 Jan 24 Utilisation Headroom Slide 27
Slide 28: Working Capital
rsonal use only Working Capital Slide 28
Slide 29: Working Capital & Cash Flow
Working Capital & Cash Flow Bubs expects it will be cash flow positive with positive trading EBIT 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 was $2.1m for Jul-23 to Dec- 23, noting this incl
Slide 30: Progress To Date & Outlook
rsonal use only Progress To Date & Outlook Slide 30
Slide 31: FY24 Progress To Date & Outlook
FY24 Progress To Date & 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 Strategic Priority Update 1 Forecast net revenue of $80m Tracking above forecast 2 Gross margin at 40% B
Slide 32: Thank you
rsonal use only Thank you investors@bubsaustralia.com Slide 32