Baby Bunting Group Ltd. · ASX:BBN
Baby Bunting — Investor Presentation (February 2024)
20 slides from Baby Bunting's investor presentation, Feb 20, 2024
Slide 1: 1H FY24 Investor Presentation
1H FY24 Investor Presentation 20 February 2024 Mark Teperson Darin Hoekman Chief Executive Officer Chief Financial Officer
Slide 2: Important notice and disclaimer
Investor Presentation Half Year 20 24 Important notice and disclaimer This document is a presentation of general background information about the activities of Baby Bunting Group Limited (Baby Bunting) current at the date of the presentation (20 February 2024). The information contained in this pres
Slide 3: Supporting new & expectant parents in the early stages of parenthood
Supporting new & expectant parents in the early stages of parenthood
Slide 4: 1H FY24 Pro Forma Financial Summary
Investor Presentation Half Year 2024 1H FY24 Pro Forma(1) Financial Summary Group Sales Gross Profit % CODB(2) $248.5m 37.2% $81.8m Total sales down 2.5% flat vs pcp down $0.7m vs pcp Group EBITDA(2) Net Debt Free Cash Flow $10.6m $6.2m $7.4m -12.6% vs pcp Down from improving $14.6m 4.3% of sales $2
Slide 5: First half in review
Investor Presentation Half Year 20 24 First half in review • Baby Bunting customers are economising in response to acute cost of living pressures • Heightened price competition in national brands across key hard-good categories Market • 296,000 births for the 12 months ended 30 June 2023, down 4.1%
Slide 6: CEO insights
Investor Presentation Half Year 20 24 CEO insights • Despite the current challenging macro environment, we have seen a steady improvement in comparable sales performance and new customer acquisition • Clear leader in the category with a large total addressable market opportunity across AU & NZ, prov
Slide 7: Sales performance
Investor Presentation Half Year 20 24 Sales performance Total Sales ($m) Change in go-to-market strategy has driven a steady sales improvement $254.9 • Comparable sales of -7.0%, some recovery on the back of improved customer acquisition since Nov 2023 $248.5 $239.1 • Q1: -8.8%, Q2: -5.3%, last 8 we
Slide 8: Gross Margin
Investor Presentation Half Year 20 24 Gross Margin Cost of living & price competition providing headwinds to gross margin improvement Gross profit % of 37.2% was flat vs pcp, a solid result in the current environment Gross Profit ($m) • Margin impact of price deflation: price competition in key hard
Slide 9: Cost of Doing Business
Investor Presentation Half Year 20 24 Cost of Doing Business Focus on operational excellence has driven productivity improvement CODB $81.8m, down $0.7m vs pcp (now 32.9% of sales) including: Store expenses up $2.5m vs pcp • $3.3m on 4 new stores opened during the half and annualising costs of 7 sto
Slide 10: Profit & Loss
Investor Presentation Half Year 20 24 Profit & Loss $million 1H FY24 1H FY23 Change Sales 248.5 254.9 -2.5% Total sales of $ 248.5m, down 2.5% vs pcp Comp growth % -7.0% 0.4% Cost of sales (156.0) (160.2) • Comparable store sales decline of 7.0% Gross Profit 92.5 94.7 -2.4% Gross Profit Margin 37.2%
Slide 11: Statement of Financial Position
Investor Presentation Half Year 20 24 Statement of Financial Position Balance sheet continues to be in a strong position with plenty of headroom for growth $ million 1H FY24 1H FY23 • Inventory reduction of $14.2m vs pcp driven by focus on inventory productivity Cash and cash equivalents 6.8 10.8 In
Slide 12: Cash Flow
Investor Presentation Half Year 20 24 Cash Flow Free cash flow up $14.6m vs pcp $ million 1H FY24 1H FY23 Working capital management improved driven by better EBITDA(1) 10.6 12.2 inventory management including expanded clearance activities Movement in working capital 4.3 (10.1) Tax Paid (0.9) (2.0)
Slide 13: Follow the customer and you'll never have to look for growth
Follow the customer and you’ll never have to look for growth
Slide 14: 2H Priorities
Investor Presentation Half Year 20 24 2H Priorities Impacts Area of What? Sales Margin CODB CX Focus • Increase investment in performance & social marketing to drive new Change in go-to-market customer acquisition and network sales growth • Transition from digital catalogues to event-based promotion
Slide 15: Looking to the future
Investor Presentation Half Year 20 24 Looking to the future Our goal remains to return the business to 10% EBITDA(1) margin • Elevated focus on customer • Adapt to the evolving preferences and behaviours of Millennial & Gen Z parents • Transform the in-store & online experience to provide our custom
Slide 16: Trading update
Investor Presentation Half Year 20 24 Trading update Trading performance since Boxing Day(1) until 16 February 2024: • Total sales down 1.4% • Comparable store sales down 3.2% • New customers acquired up 3.4% vs pcp • Online sales up 14.0% vs pcp Store roll-out Our next store will be Maroochydore (Q
Slide 17: Appendices
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Slide 18: Appendix 1: Statutory – Pro Forma Income Statement Reconciliation
Investor Presentation Half Year 20 24 Appendix 1: Statutory – Pro Forma Income Statement Reconciliation 1H FY24 1H FY23 Statutory Add Pro Forma Statutory Add Pro Forma 1H FY24 Pro Forma Adj (1) 1H FY24 1H FY23 Pro Forma Adj (1) 1H FY23 $ million Sales 248.5 248.5 254.9 254.9 Cost of sales (156.0) (1
Slide 19: Appendix 2: AASB 16 Transition Impact – Pro Forma Income Statement
Investor Presentation Half Year 20 24 Appendix 2: AASB 16 Transition Impact – Pro Forma Income Statement 1H FY24 1H FY23 Reversal of AASB 16 Reversal of AASB 16 Pro Forma Depreciation and Add Operating Lease Pre-AASB 16 Pro Forma Depreciation and Add Operating Lease Pre-AASB 16 1H FY24 Interest Expe
Slide 20: 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 stores in the prior financial year, provided the stores were open at the beginning o
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