Baby Bunting Group Ltd. · ASX:BBN
Baby Bunting — Investor Presentation (August 2024)
28 slides from Baby Bunting's investor presentation, Aug 20, 2024
Slide 1: FY24 Investor Presentation
FY24 Investor Presentation Mark Teperson, CEO Darin Hoekman, CFO 20 August 2024 1
Slide 2: Important notice and disclaimer
Important notice and disclaimer Forward looking statements Pro forma financial information This document is a presentation of general This document contains certain forward looking statements and Pro forma financial results have been calculated to exclude background information about the activities
Slide 3: Executing on the plan
Executing on the plan Business initiatives and revised go-to-market strategy starting to deliver FY24 results FY25 trade update • Pro Forma1 NPAT $3.7m (FY24 guidance $2m–$4m) Recent trade continues to improve Statutory NPAT of $1.7m • First 7 weeks of trade delivered +3.5% total sales growth & • Q4
Slide 4: FY24 Operating summary
FY24 Operating summary •1 4 new stores opened – 1 in AU and 3 in NZ. •6 Working capital management delivered Closure of Camperdown (Q2 FY24) at end of its $7m reduction in comparable stores’ lease inventory, improving both age and quality of inventory •2 Changed our go-to-market strategy through 2H
Slide 5: Financial Summary
Financial Summary FY24 Investor Presentation 5
Slide 6: Sales performance
Sales performance $550.0 30.0% We continue to experience tough trading conditions with an $507.3 $515.8 $498.4 Total Sales 28.0% improved trend through Q4 and into FY25 $m $500.0 $468.4 26.0% 24.0% $450.0 On the back of significant changes to our go-to-market execution $405.2 22.0% 22.2% through FY2
Slide 7: Profit & loss
Profit & loss FY24 Pro Forma Income Statement Pro Forma Pro Forma $ million Commentary FY24 FY23 Change Sales 498.4 515.8 -3.4% Total sales of $498.4m, down 3.4% vs pcp, Comp growth % -6.3% -3.6% driven by comparable store sales decline of 6.3% Cost of sales (314.7) (322.8) Gross margin % of 36.8%,
Slide 8: Financial position
Financial position Renewed $70m NAB debt facility demonstrates NAB’s support and provides us sufficient headroom to execute our growth strategy Statutory Statutory $ million FY24 FY23 Commentary Cash & cash equivalents 9.5 5.0 • Inventory well managed, $7.0m reduction Inventories 94.4 98.0 in compar
Slide 9: Cash flow
Cash flow Improved cash conversion ratio through disciplined capital management Commentary $ million FY24 FY23 1 EBITDA 15.9 31.2 Cash conversion ratio improved to 86.0% Movement in working capital 1.4 (1.0) demonstrates well managed working capital Tax Paid (2.2) (4.7) despite tightened trading con
Slide 10: The best start for the brightest future
The best start for the brightest future 10
Slide 11: Growth plan
Returning to growth Delivering shareholder value Growth 1 • Leverage our strength in nursery essentials (hard goods) plan Strengthen market Grow • Capitalise on significant opportunity in position Market soft goods market through our market share leading hard goods offer Baby Bunting has a strong co
Slide 12: Grow Gross Margin
Returning to growth Grow EBITDA Grow Gross Margin In FY25, we are targeting 40% gross margin with further expansion targeted in future years ~42% In progress In progress In progress 1.5% In progress 36.8% Achieved FY24 margin Simplify price Trading Amplify Scale private De-range Medium term target a
Slide 13: Our Progress: Grow Market Share
Strategic Priorities Our Progress Growth objectives Deliverables 1 Enhance customer Grow experience Market Market leading Exceptional Best-in-class Data & products experiences services Analytics share New brands launched Store experience 1-on-1 personalised Requirements for new We presented our appo
Slide 14: Our Progress: Grow EBITDA
Strategic Priorities Our Progress Growth objectives Deliverables 2 Drive platform Grow Grow leverage Gross Margin Media New Zealand Operating EBITDA business profitability leverage Trading terms Sonder Media Trading terms updated for Lowering variable We presented our engaged to key NZ suppliers cos
Slide 15: Our Progress: Return on invested capital
Strategic Priorities Our Progress Growth objectives Deliverables 3 Disciplined Grow capital Return on management Network Refurbish Inventory Re-platforming invested growth existing store productivity ERP/POS capital network Grow store network First 3 stores to be New inventory To be progressed in We
Slide 16: Our new store experience: timetable
Returning to growth Grow Return on Invested Capital Our new store experience: timetable We're making Australia's best specialty baby goods store network even better Progress on track Brand Creative Platform In-store Experience Design Retail Customer Experience Design Build Prep Construction Open Per
Slide 17: FY25 Outlook
FY25 Outlook FY24 Investor Presentation 17
Slide 18: FY25 capital investment & store roll-out
FY25 capital investment & store roll-out $10m to $13m of capex fully expected to be fully funded from operating cashflow FY25 capital investment program to include: Status Capex 3 large format stores 2 AU, 1 NZ (timing Q1, Q2, Q4) $2.4m - $3.0m committed 3 refurbishments of existing New format into
Slide 19: FY25 Outlook
FY25 Outlook Stabilising the business and returning to positive earnings growth FY25 trade update Outlook Recent trade continues to improve FY25 pro forma NPAT expected to be in the range of First 7 weeks of trade1 is +3.5% total sales growth and $9.5m to $12.5m, based on expectation that: +2.0% com
Slide 20: Growth plan
Returning to growth Delivering shareholder value Growth 1 • Leverage our strength in nursery essentials (hard goods) plan Strengthen market Grow • Capitalise on significant opportunity in position Market soft goods market through our market share leading hard goods offer Baby Bunting has a strong co
Slide 21: Appendix
BabyBunting ss Appendix
Slide 22: Statutory to Pro Forma Income Statement Reconciliation
Appendix One Statutory to Pro Forma Income Statement Reconciliation FY24 FY23 Pro forma financial results have been calculated to exclude the Add Add following items (refer Directors’ Report (dated 20 August 2024) Statutory Pro Forma Pro Forma Statutory Pro Forma Pro Forma for further detail): $ mil
Slide 23: Pro Forma Income Statement
Appendix Two Pro Forma Income Statement AASB 16 Transition Impact FY24 FY23 Reversal of Reversal of AASB 16 Add Operating AASB 16 Add Operating Pro Forma Depreciation Lease Pre-AASB 16 Pro Forma Depreciation Lease Pre-AASB 16 $ million FY24 and Interest Expenses FY24 FY23 and Interest Expenses FY23
Slide 24: Our market: $6.3 billion ANZ TAM and growing
Returning to growth Grow Market Share Our market: $6.3 billion ANZ TAM and growing Significant opportunity to grow and leverage our leadership in hard goods (~23% market share) to grow our share of soft goods Our core competency The opportunity in soft goods 1.8 3.4 $ $ Incremental 1% gain in soft g
Slide 25: Long Term EBITDA Growth
Returning to growth Grow EBITDA Long Term EBITDA Growth Clear path to achieve Cost of Doing Business initiatives historical EBITDA margins Lowering our variable costs ~10% 10% EBITDA margin • Supply Chain efficiencies achieved in FY22 through • Customer Care productivity Targeting a +500 bps sustain
Slide 26: Optimise and grow store network
Returning to growth Grow Return on Invested Capital Small format store pilots expected to Optimise and grow store network Small format be in market Q4 FY25 followed by a period of testing Expanding the store network into new catchments and meeting stores will enable and assessment opportunity to mor
Slide 27: Large format stores deliver great returns
Large format stores deliver great returns 25% of stores are in their growth phase with new store roll out to come Mature Metro Stores (>4 yr) • FY2022 was the historical high watermark in Metro Australia FY2020 FY2022 FY2024 terms of sales productivity Revenue per store ($m) 7.8 8.5 7.2 • Mature sto
Slide 28: Glossary
Glossary Comparable Store Sales Calculated as a percentage change of the total sales generated from stores (including the online store) Growth 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 of
Baby Bunting Group — Investor Presentation (August 2024) on 6ix