Bubs Australia Ltd. · ASX:BUB
Bubs Australia — FY2020 Earnings Presentation
32 slides from Bubs Australia's earnings presentation, Aug 31, 2020
Slide 1: Lifting Off Into Global Growth: FY20 Full Year Results Presentation
ASX: BUB Bubs Australia For personal use only LIFTING OFF INTO GLOBAL GROWTH FY20 Full Year Results Presentation 31 August 2020
Slide 2: Disclaimer
FY20 FULL YEAR RESULTS PRESENTATION Disclaimer DISCLAIMER This investor presentation (Presentation) is dated 31 August 2020 and has been prepared by Bubs Australia Limited (ACN 060 094 742) (Bubs or the Company). For personal use only The material in this Presentation is general background informati
Slide 3: Contents
For personal use only FY20 FULL YEAR RESULTS PRESENTATION Contents CONTENTS Financial performance 6 Strategic roadmap 15 Global growth strategy 23 Outlook 30 3
Slide 4: Growing Generation Joy
For personal use only Growing Generation Joy™
Slide 5: Vision & Values
FY20 FULL YEAR RESULTS PRESENTATION Vision & Values Creating new generations For personal use only of happy, healthy GOODNESS VERY BEST We believe in wholesome, We believe in being thorough healthy food and a positive and uncompromising, sticking approach to life. to our ethics no matter what. HONES
Slide 6: Financial Performance
FY20 FULL YEAR RESULTS PRESENTATION FINANCIAL PERFORMANCE For personal use only
Slide 7: Financial Highlights
FY20 FULL YEAR RESULTS PRESENTATION Financial Performance ASX 300 Bubs Australia FINANCIAL HIGHLIGHTS For personal use only FY20 results were driven by the strong performance of Bubs® Infant Formula in all $62m Group Gross Revenue1 retail channels and regions. +32% Group Gross Revenue1 pcp +32% Dire
Slide 8: Financial Overview
FY20 FULL YEAR RESULTS PRESENTATION Financial Performance FINANCIAL OVERVIEW For personal use only FY20 FY19 % change ($m) ($m) Normalised gross margin2 improved from Gross revenue1 61.7 46.7 32% 21% to 24%. Revenue 54.6 43.9 24% • Effective OPEX management Normalised gross margin2 24% 21% 14%
Slide 9: FY20 Group Financial Review
FY20 FULL YEAR RESULTS PRESENTATION Financial Performance FY20 GROUP FINANCIAL REVIEW Strong growth across core products and all regions. For personal use only GROUP REVENUE GROWTH REGIONAL CHANNEL MIX BALANCED PRODUCT MIX Continued strong growth Increasing market diversification. Ability to allocat
Slide 10: Fuelled by Strong Infant Formula Growth
FY20 FULL YEAR RESULTS PRESENTATION Financial Performance FUELLED BY STRONG INFANT FORMULA GROWTH For personal use only Infant Formula sales delivered +58% pcp. KEY HIGHLIGHTS Bubs® Infant Formula Revenue trengthened focus on highest margin products within S ($million) group portfolio. 40 Contr
Slide 11: Increasing Market Diversification
FY20 FULL YEAR RESULTS PRESENTATION Financial Performance INCREASING MARKET DIVERSIFICATION For personal use only Growth driven from Domestic Retailers, China & Vietnam. Revenue by Market ($million) 54.6 KEY HIGHLIGHTS 60 With strengthened focus on expanding distribution in the 43.9 +501% 5.4 domes
Slide 12: Gross Margin Improvements
FY20 FULL YEAR RESULTS PRESENTATION Financial Performance GROSS MARGIN IMPROVEMENTS For personal use only Normalised gross margin1 improved from 21% to 24% despite expanded footprint in domestic retailers. KEY INITIATIVES FOR FURTHER IMPROVEMENTS Normalised Group Gross Margin1 • Enhancing product
Slide 13: Working Capital
FY20 FULL YEAR RESULTS PRESENTATION Financial Performance WORKING CAPITAL With a strong balance sheet and cash position we retain the flexibility to execute our growth strategy. For personal use only ($million) 33.8 60 (1.0) 50 (5.2) (2.2) 7.0 40 (16.1) 30 26.0 23.3 (13.6) 20 10 0 Cash on Capital I
Slide 14: COVID-19 Impact
FY20 FULL YEAR RESULTS PRESENTATION Financial Performance COVID-19 IMPACT For personal use only Consumer Behaviour Supply Chain Regulatory People & Consumption Channels Resilience & Market Access & Culture Significant pantry stocking As an essential service, there Temporary closure of borders Additi
Slide 15: Strategic Roadmap
For personal use only FY20 FULL YEAR RESULTS PRESENTATION STRATEGIC ROADMAP
Slide 16: Building on Solid Foundations to Accelerate Global Growth
FY20 FULL YEAR RESULTS PRESENTATION Financial Overview BUILDING ON SOLID FOUNDATIONS TO ACCELERATE GLOBAL GROWTH For personal use only Since listing Bubs has become Australia’s leading producer of goat dairy and one of the fastest growing infant formula brands. Bubs is well positioned to become a ma
Slide 17: Our Brands
FY20 FULL YEAR RESULTS PRESENTATION Strategic Roadmap OUR BRANDS Our portfolio of brands is led by Bubs®, our hero brand and the catalyst for value creation across the business. For personal use only Our goat dairy specialist brands: CapriLac®, Deloraine® and Capela® optimise brand equity value conv
Slide 18: One Brand, Multiple Feeding Occasions
FY20 FULL YEAR RESULTS PRESENTATION Strategic Roadmap ONE BRAND, MULTIPLE FEEDING OCCASIONS Bubs® caters for all feeding occasions throughout a child’s development. Bubs® is a brand driven by its core – centered around For personal use only children’s nutritional needs in key consumption occasions.
Slide 19: Building Bubs Brand Equity on a Global Stage
FY20 FULL YEAR RESULTS PRESENTATION BUILDING BUBS® BRAND EQUITY For personal use only ON A GLOBAL STAGE +43m total reach achieved over first phase of consumer public relations campaign1 Introducing Jennifer Hawkins, Bubs® Global Brand Ambassador – providing influence, relevance and global reach as h
Slide 20: Optimising Supply Chain
FY20 FULL YEAR RESULTS PRESENTATION Strategic Roadmap OPTIMISING SUPPLY CHAIN For personal use only Bubs unique vertical integration model continues to be our foundational strength. No.1 Australia’s largest goat dairy producer UNIQUE SUPPLY SCALABLE UNDERPINNED BY GOAT CHAIN MODEL MANUFACTURING DAIR
Slide 21: Goat Dairy Innovation
FY20 FULL YEAR RESULTS PRESENTATION Strategic Roadmap GOAT DAIRY INNOVATION HIGHEST AND BEST USE OF GOAT MILK POOL For personal use only Our innovation growth pillars around which we continue to enrich and expand our goat dairy portfolio. High margin adjacent categories Grow broader adult Respond qu
Slide 22: Consumer Led Innovation
FY20 FULL YEAR RESULTS PRESENTATION Strategic Roadmap CONSUMER LED INNOVATION For personal use only HIGH MARGIN ADJACENT CATEGORIES Introducing Vita Bubs™ Launching across 400 Chemist Warehouse stores in October 2020 Vita Bubs™ is Australia’s complete children’s nutrition Chemist Warehouse is Austra
Slide 23: Global Growth Strategy
For personal use only FY20 FULL YEAR RESULTS PRESENTATION GLOBAL GROWTH STRATEGY
Slide 24: China Remains Key Focus
FY20 FULL YEAR RESULTS PRESENTATION Global Growth Strategy CHINA REMAINS KEY FOCUS LEAD EXPORT MARKET For personal use only China is our primary export market with the highest growth potential for Goat Infant Formula as the fastest growing market segment. UNIQUELY POSITIONED Bubs® is uniquely positi
Slide 25: Export Markets Beyond China
FY20 FULL YEAR RESULTS PRESENTATION Global Growth Strategy EXPORT MARKETS BEYOND CHINA For personal use only Already delivering strong international growth to mitigate China dependency risk. Other International Revenue ($million) New Market Launches in FY20: 6 5.4 • Vietnam 5 • Hong Kong 4
Slide 26: China CBEC Growth
For personal use only FY20 FULL YEAR RESULTS PRESENTATION Global Growth Strategy +90% Bubs® Q4 FY20 CHINA CBEC Alibaba growth pcp1. GROWTH • China consumer demand remains strong with channel shifting in purchasing behaviour to CBEC in Q4 FY20. • Outbound Daigou Channel temporarily constrained due
Slide 27: Barriers to Entry for China General Trade Increasing
FY20 FULL YEAR RESULTS PRESENTATION Global Growth Strategy BARRIERS TO ENTRY FOR CHINA GENERAL TRADE INCREASING For personal use only • Regulatory constraints increasing. China infant formula market is consolidating due to tightening regulations. • Macro-environment restraining approvals. Inte
Slide 28: Pivotal Created by Bubs Localisation Strategy
FY20 FULL YEAR RESULTS PRESENTATION Global Growth Strategy PIVOTAL “CREATED BY BUBS®” BREAKTHROUGH LOCALISATION STRATEGY For personal use only Bubs® and Joint Venture partner Beingmate enter a Memorandum of Understanding to manufacture Bubs® China label Goat Infant Formula locally in China, at one
Slide 29: Created by Bubs Provides Clear Path for Global Brand Expansion
FY20 FULL YEAR RESULTS PRESENTATION Global Growth Strategy “CREATED BY BUBS®” PROVIDES CLEAR PATH FOR GLOBAL BRAND EXPANSION For personal use only Our localisation strategy can be applied to other jurisdictions in the future to accelerate the Company’s global expansion into sizeable markets where s
Slide 30: Outlook
For personal use only FY20 FULL YEAR RESULTS PRESENTATION OUTLOOK
Slide 31: Outlook
FY20 FULL YEAR RESULTS PRESENTATION Outlook OUTLOOK Long-term ambition to become a major global food business, For personal use only spearheaded by the best Australia has to offer in infant nutrition Aspirational revenue and underpinned by a unique goat dairy supply chain. goal of $400m & gross marg
Slide 32: Bubs Australia
ASX: BUB Bubs Australia For personal use only