Bubs Australia Ltd. · ASX:BUB
Bubs Australia — H1 FY2019 Earnings Presentation
22 slides from Bubs Australia's earnings presentation, Feb 28, 2019
Slide 1: Half Year Interim Results
For personal use only HALF YEAR INTERIM RESULTS 28.02.2019 1
Slide 2: Goodness Very Best
For personal use only GOODNESS VERY BEST Inspiring new generations of happy, healthy bubs. HONESTY PLAYFULNESS 2
Slide 3: Overview Financial
3 For personal use only 01 OVERVIEW FINANCIAL
Slide 4: Record Growth: 1H19 Financial Highlights
RECORD GROWTH For personal use only Significant uplift in revenue reflects market share gains in core products across all regions. 1H19 FINANCIAL HIGHLIGHTS Record gross revenue: 1H19 $21.03 million; exceeded total FY18 full-year revenue. Driven by strong domestic growth: +412% (5x) pcp, and increas
Slide 5: Financial Results
FINANCIAL RESULTS For personal use only 1H19 gross margin* improved to 19%, compared to 12% in 2H FY18, due to the optimisation of product and channel mix, engaging new suppliers and improvements in allocating the The 1H financial results are characterised by a very strong revenue trajectory. milk p
Slide 6: Group Revenue
GROUP REVENUE For personal use only QUARTERLY GROSS SALES REVENUE KEY DRIVERS $25,000,000 Consistent quarter-on-quarter growth since $21.03M listing in 2017, with record uplift in Q2 FY19. $20,000,000 $18.4M Record 1H19 gross revenue: $21.03 million; +465% (6x) pcp, and +43% on 2H18. $15,000,000 Gro
Slide 7: Sales Momentum
SALES MOMENTUM For personal use only HALF YEAR GROSS SALES REVENUE NULAC PRODUCTS REVENUE BUBS PRODUCTS REVENUE $14,000,000 $10,000,000 +26% $9,000,000 $12,000,000 $8,000,000 $10,000,000 $7,000,000 +109% $8,000,000 $6,000,000 $5,000,000 $6,000,000 $4,000,000 $4,000,000 $3,000,000 NuLac Foods Acquisi
Slide 8: Balanced Product Mix
BALANCED PRODUCT MIX For personal use only GROSS SALES REVENUE BY PRODUCT GROUP KEY DRIVERS Gross sales of Bubs® products: $9.0 million; 43% of group 1H revenue. 21% 17% Increase in high margin products: 30% 35% + Infant Formula sales increased +180% (3x) pcp and +144% on 2H18 FY18 1H19 + Organic Ba
Slide 9: Regional Channel Mix
REGIONAL CHANNEL MIX For personal use only GROSS SALES REVENUE BY CHANNEL: KEY DRIVERS Domestic sales grew +412% (5x) pcp, and 2% 1% +30% on 2H18, driven by strong domestic 14% presence in major supermarkets, and 23% activation of the Daigou outbound channel. Sales to China grew +901% (10x) pcp, and
Slide 10: Strategic Progress
For personal use only 02 STRATEGIC PROGRESS 10
Slide 11: Growth Drivers
GROWTH DRIVERS For personal use only FOUR KEY PILLARS FOR GROWTH INCREASED INNOVATION DOMESTIC MARKET AND PRODUCT PENETRATION DEVELOPMENT BRAND ENHANCED AWARENESS ASIAN FOCUS AND IMPACT 11
Slide 12: FY19 Strategic Priorities
FY19 STRATEGIC For personal use only PRIORITIES With solid foundations in place, the Company has made considerable progress on delivering our key drivers for growth: VERTICAL CHINA INTEGRATION & CHANNEL PRODUCT SUPPLY CHAIN DEVELOPMENT INNOVATION CORPORATE + Exclusive Milk Supply + Digitally driven
Slide 13: Supply Integration
For personal use only 03 SUPPLY INTEGRATION 13
Slide 14: Goat Milk Pool
AUSTRALIA & NZ TOTAL HERD: ~20,000 TOTAL SUPPLY: ~20M LT p.a. GOAT MILK POOL For personal use only Bubs Australia Farms 9,000 goats 7.2M Lt p.a. Bubs NZ Farms 4,800 goats 3.8M Lt p.a. Central Dairy Goats Exclusive Milk Supply Agreement 6,000 goats 6.2M Lt p.a. 14
Slide 15: Vertical Integration
VERTICAL INTEGRATION For personal use only Supply chain integration and strategic manufacturing partnerships provide Bubs® with a unique provenance positioning, offering consumers and retailers product integrity, traceability, and scalability. AUSTRALIA FARMS NUTRITIONALS CANNING BUBS® BRAND Exclusi
Slide 16: One-Step Processing - Tatura (Bega)
ONE-STEP PROCESSING TATURA (BEGA) For personal use only FRESH MILK DIRECTLY TO INFANT FORMULA Bubs has recently entered a long-term manufacturing agreement with Tatura, taking fresh goat milk directly from the farm gate and wet blending to nutritional infant formula base in one step (without first c
Slide 17: China Channels
17 For personal use only 04 CHINA CHANNELS
Slide 18: Routes-to-Market China
ROUTES-TO-MARKET CHINA For personal use only MULTI CHANNEL STRATEGY PUSH FROM PULL FROM AUSTRALIA CHINA Australian shelf presence C2C Daigou Mother & Baby B2C Cross-border, in major supermarkets gift stores, stores eCommerce & O2O and pharmacies. P&S, KOL. Online and Offline Multi-channel strategy f
Slide 19: C2C Daigou
C2C Daigou C2C KOL For personal use only eCOMMERCE DAIGOU ACTIVATION In 1H19 the company actively engaged Australian based Daigous (personal shoppers), who play an integral role in building brand awareness in China, through syndication of digital content. Bubs partnered with hundreds of KOL’s (Key O
Slide 20: Mother & Baby Stores
Mother & MOTHER & Baby Stores For personal use only BABY STORES BUBS ORGANIC® BABY FOOD LAUNCH IN CHINA RETAIL Following successful import registration, Bubs Organic® baby food pouches, cereals and teething rusks are being distributed into Mother and Baby physical stores throughout China, including
Slide 21: Disclaimer
For personal use only DISCLAIMER This presentation and any materials provided (materials) have been prepared by 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 22: Investor Resource Centre
For personal use only INVESTOR RESOURCE CENTRE www.investor.bubsaustralia.com 22