Baby Bunting Group Ltd. · ASX:BBN
Baby Bunting — H1 FY2023 Earnings Presentation
22 slides from Baby Bunting's earnings presentation, Feb 17, 2023
Slide 1: 1H FY23 Investor Presentation
1H FY23 Investor Presentation Period ended 26 December 2022 17 February 2023 Matt Spencer Chief Executive Officer & Managing Director Darin Hoekman Chief Financial Officer 1
Slide 2: Important notice and disclaimer
Investor Presentation Half Year 2023 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 (17 February 2023). The information contained in this prese
Slide 3: Supporting new & expectant parents for over 40 years
Supporting new & expectant parents for over 40 years
Slide 4: 1H FY23 Pro Forma Financial Summary
Investor Presentation Half Year 2023 1H FY23 Pro Forma(1) Financial Summary Group Sales Total Sales Growth Gross Profit % $254.9m 6.6% 37.2% Comp growth 0.4% -212 bps vs pcp CODB(2) Group NPAT AU NPAT 32.4% $5.1m $6.8m deleveraged -59.2% vs pcp -46% vs pcp 222 bps vs pcp Group EBITDA(2) Interim Divi
Slide 5: 1H FY23 Operating Summary
Investor Presentation Half Year 2023 1H FY23 Operating Summary Keeping our Team & Customers safe 5 new stores opened (plus 1 relocation) Private Label & Exclusive Product (PLEX) sales at 44.4% of sales Best Buy Product sales 53.0% of sales (1H FY22: 34.5%) Loyalty program changes implement
Slide 6: Standing out in a fragmented competitive landscape
Investor Presentation Half Year 2023 standing out in a fragmented competitive landscape Baby Bunting current store numbers by state & country Drivers of competitive advantage Market leader boasting a national footprint of AU target +110 69 Australian stores (NZ: 1) and a store network plan stores of
Slide 7: Market share continued to grow in 1H
Investor Presentation Half Year 2023 Market share continued to grow in 1H +6.6% +0.4% +36.7% 725k Total Sales ($m) total comparable 3-year sales Active loyalty sales sales growth members (1) growth growth (pre-COVID) ~5k sign-ups $ 28 0.0 $254.9 per week $ 26 0.0 $ 24 0.0 $239.1 $217.3 • 5 new store
Slide 8: Sales performance up 36.7% since 1H FY20
Investor Presentation Half Year 2023 Sales performance up 36.7% since 1H FY20 We have grown market share significantly in all three of our product Category Performance categories since COVID: Nursery Consumer Play • Nursery essentials (core categories making up 68% of sales) was Essentials Staples T
Slide 9: Gross margin recovering
Investor Presentation Half Year 2023 Gross margin recovering Focus on value everyday Gross Profit % 40.5% - 1H Gross Profit % was 37.2%, down 212 bps vs pcp 38.5% 39.7% • 1H margin challenges addressed, noting January GP % 38.7% 38.0% 37.9% traded above prior year reflecting GP recovery plans 36.4%
Slide 10: Investment to support growth
Investor Presentation Half Year 2023 Investment to support growth CODB % of sales of 32.4% Cost of doing business of $82.5m up $10.4m vs pcp including: Supporting • Cost inflation (Stores, Distribution Centre & Store Support Investment in Scale Centre) $2.5m $1.8m Growth $6.2m • Growth investments $
Slide 11: New Zealand: NZ$450m+ addressable market opportunity
Investor Presentation Half Year 2023 New Zealand: NZ$450m+ addressable market opportunity • Our first store in Auckland, opened in August 2022 Albany First store opened • Two further sites progressed in Auckland, anticipated opening FY24 August 2022 • Our second store will open in Christchurch, targ
Slide 12: Transformation program supporting long-term growth
Transformation program(1) supporting long-term growth Investor Presentation Half Year 2023 Project Project features Status Acquisition of Services Business • 137,000 car seat installations installed in FY22 • Platform for future B2B growth • Successful launch of capsule & breast pump hire business
Slide 13: Summary Pro Forma Income Statement
Investor Presentation Half Year 2023 Summary Pro Forma Income Statement $ million Pro Forma Pro Forma Change 1H FY23 1H FY22 Sales 254.9 239.1 6.6% Total sales of $254.9m, up 6.6% vs pcp Comp growth % 0.4% 6.8% Cost of sales (160.2) (145.2) • Comparable store sales growth of 0.4% Gross Profit 94.7 9
Slide 14: Statement of Financial Position
Investor Presentation Half Year 2023 Statement of Financial Position Statutory Statutory Statutory $ million 26-Dec-22 26-Jun-22 26-Dec-21 • Inventory increase of $20m on pcp includes: Cash & cash equivalents 10.8 12.2 15.0 Inventories 112.9 96.7 92.9 • ~$10m for 6 new stores (incl. Loganholme Plant
Slide 15: Cash Flow
Investor Presentation Half Year 2023 Cash Flow $ million 1H FY23 1H FY22 • Increase in working capital (inventory investment) reflecting investment in new stores EBITDA (1) 12.2 21.8 (AU & NZ) and our usual December inventory build Movement in working capital (10.1) (7.7) ahead of Chinese New Year f
Slide 16: Introducing Marketplace on babybunting.com.au
Investor Presentation Half Year 2023 Introducing Marketplace on babybunting.com.au The one stop shop for all baby goods in Australia More products, more brands, more suppliers, and more choice Leveraging babybunting.com.au, Marketplace presents a significant revenue opportunity • Capital efficiency
Slide 17: Priorities
Investor Presentation Half Year 2023 Priorities Restore gross margin in FY23 to above FY22 levels Grow our store network to 110+ AU stores (10+ NZ) Deliver cost of doing business leverage Investment in Private Label & Exclusive Products Targeting expanded Total Addressable Market opportuni
Slide 18: Trading update
Investor Presentation Half Year 2023 Trading update As at 16 February 2023, year-to-date sales performance: • Total sales growth +3.3% 110+ STORE • Comparable store sales growth -2.1% NETWORK Q1 Q2 Jan Feb MTD YTD PLAN (AU) FY23 7.6% -7.2% -8.7% -2.6% -2.1% FY22 -1.4% 16.1% 6.2% -0.3% 6.1% FY21 17.0
Slide 19: Appendices
Appendices
Slide 20: Appendix 1: Statutory - Pro Forma Income Statement Reconciliation
Investor Presentation Half Year 2023 Appendix 1: Statutory - Pro Forma Income Statement Reconciliation 1H FY23 1H FY22 Statutory Add Pro Forma Statutory Add Pro Forma 1H FY23 Pro Forma Adj (1) 1H FY23 1H FY22 Pro Forma Adj (1) 1H FY22 $ million Sales 254.9 254.9 239.1 239.1 Cost of sales (160.2) (16
Slide 21: Appendix 2: AASB 16 Transition Impact - Pro Forma Income Statement
Investor Presentation Half Year 2023 Appendix 2: AASB 16 Transition Impact - Pro Forma Income Statement 1H FY23 1H FY22 Reversal of AASB Reversal of AASB 16 Pro Forma 16 Depreciation Add Operating Pre-AASB 16 Pro Forma Depreciation and Add Operating Pre-AASB 16 1H FY23 and Interest Lease Expenses 1H
Slide 22: Glossary
Investor Presentation Half Year 2023 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 th