Bubs Australia Ltd. · ASX:BUB
Bubs Australia — Investor Presentation (February 2020)
23 slides from Bubs Australia's investor presentation, Feb 4, 2020
Slide 1: Investor Presentation
Bubs Australia Limited ACN 060 094 742 23-29 Nina Link, Dandenong South VIC 3175 Australia 1800 2827 2878 (1800 BUBS AUST) info@bubsaustralia.com For personal use only INVESTOR PRESENTATION Melbourne, 4 February 2020: Bubs Australia Limited (ASX: BUB) (the Company) will be conducting Investor Presen
Slide 2: Investor Update: Scalable Growth
For personal use only INVESTOR UPDATE 4 FEBRUARY 2020 SCALABLE GROWTH 1
Slide 3: Creating new generations of happy, healthy bubs
Goodness Creating new generations of happy, healthy bubs
Slide 4: Key Messages
KEY MESSAGES For personal use only 01 | CORE INVESTMENT PROPOSITION AND FINANCIAL OVERVIEW 02 | MAINTAINING GROWTH MOMENTUM IN CHALLENGING MARKET DYNAMICS 03 | CORE BUILDING BLOCKS REMAIN VALID AND PROVIDE COMPETIVE ADVANTAGE 04 | STRATEGIC GROWTH ENGINES TO DRIVE SCALABLE GROWTH
Slide 5: Financial Overview
For personal use only 4 01 OVERVIEW FINANCIAL
Slide 6: Group Revenue
GROUP REVENUE Quarterly Gross Sales Revenue For personal use only $50 $46.8M Key Highlights $45 $40 Consistent quarterly growth since listing in 2017. $35 1H: $28.8M Record gross revenue in 1H FY20; +37% pcp. $30 +37% pcp Bubs® Goat Infant Formula remains the key driver, more Millions $25 than doubl
Slide 7: Multiple Revenue Streams
MULTIPLE REVENUE STREAMS Half Year Gross Sales Revenue by Product Category For personal use only 1H FY20 growth predominantly driven by sales of Bubs® infant formula products, delivering the highest margin within group portfolio: - Infant Formula: +77% pcp - Baby Food: +23% pcp Goat Milk Powder deli
Slide 8: Portfolio Product Mix
PORTFOLIO PRODUCT MIX Gross Revenue Share by Product Category For personal use only Key Drivers 1% 3% Increased focus on investing in growth of high 14% 6% margin products, primarily infant formula. Bubs® products accounted for 53% of total revenue in 1H FY20 (66% in Q2 FY20). 43% 45% FY19 1H FY20 D
Slide 9: Regional Market Mix
REGIONAL MARKET MIX Gross Revenue Share by Region For personal use only Key Drivers Domestic sales in 1H FY20 increased +30% pcp, driven 2% 7% by strong penetration in Coles and Woolworths, and 20% launch into Chemist Warehouse. 19% Corporate Daigou Channel continues to grow month-on-month, with 1H
Slide 10: Cash Investment in Inventories
CASH INVESTMENT IN INVENTORIES For personal use only Key Drivers Adult Goat Milk Powder inventory position increased $5.6m from July to December 2019 in order to: • Meet forecasted demand for refreshed CapriLac® products. • Fulfil opening orders for Deloraine® product extensions. Infant Formula base
Slide 11: Cash Investment in Marketing
CASH INVESTMENT IN MARKETING For personal use only Key Drivers Increase and deepen consumer understanding of Bubs® brand and products through data driven campaigns: Leveraging Chinese Influencers and Taobao store owners for events, and amplify with media to drive reach in WeChat, Weibo, TikTok, and
Slide 12: Market Update
For personal use only 11 02 UPDATE MARKET
Slide 13: Market Update
MARKET UPDATE Bubs is sustaining growth momentum despite a challenging macro environment. For personal use only Responding to Evolving Market Dynamics We are closely monitoring the emergence of Coronavirus and working in conjunction with our key partners to ascertain its impact on our business opera
Slide 14: Building Blocks
For personal use only 13 03 BLOCKS BUILDING
Slide 15: Our Building Blocks
OUR BUILDING BLOCKS Bubs ability to leverage our foundation building blocks is what sets us apart. We have unrivalled strategic equity-linked partnerships and end-to-end vertical integration of our value chain. For personal use only Bubs® brand value, JV with Beingmate, 13yrs of authentic Key strate
Slide 16: Retail Partnership Success
RETAIL PARNTERSHIP SUCCESS For personal use only NEW Chemist Warehouse National store ranging with strong merchandising support providing category shelf domination. Heavy promotional campaigns supported with multi- media marketing activity throughout FY20. Scan data in key product lines exceeding sa
Slide 17: Growth Engines
For personal use only 16 04 ENGINES GROWTH
Slide 18: FY20 Focus on Key Growth Engines
FY20 FOCUS ON 3 KEY GROWTH ENGINES 1H FY20 has remained focused on development to continue to drive growth support into the Second Half. For personal use only Sustainable leadership in Deepening consumer brand Expansion into new non- vertical supply chain value connection to drive scale infant growt
Slide 19: Early Investment in Growth Engines
EARLY INVESTMENT IN GROWTH ENGINES Key activities in 1H FY20 have focused on the development of new products, new packaging and brand extensions beyond infant nutrition to capitalise on our unique integrated supply chain. For personal use only Sustainable leadership in Deepening consumer brand Expan
Slide 20: New Product Development
NEW PRODUCT DEVELOPMENT 1H FY20 investment into the development of new product launches and brand extensions For personal use only will convert to revenue realisation in Second Half. NEW NEW NEW NEW NEW Bubs® Junior Nutrition with Lacterferrin Deloraine® Pack Range Extensions Registered for sale in
Slide 21: Brand Portfolio Expansion
BRAND PORTFOLIO EXPANSION Bubs® Junior range and expansion of the Adult Goat Dairy portfolio will mean our product offerings will cater for all stages of development, feeding occasions and dietary requirements, from infants to children, through to younger adults and seniors. For personal use only In
Slide 22: Disclaimer
DISCLAIMER This presentation and any materials provided (materials) have been prepared by For personal use only Bubs Australia Limited (Bubs) and contains general information about Bubs activities. By accepting the Materials you agree to be bound by the below terms and conditions. Terms and Conditio
Slide 23: Growing Generation Joy
For personal use only 22 Growing Generation Joy
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