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Bubs Australia Limited FY25 Results Presentation 29 August 2025 For personal use only
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Disclaimer This presentation is in summary form and is not necessarily complete. It should be read together with the Company’s other announcements lodged with the Australian Securities Exchange. This presentation contains information that is based on projected and/or estimated expectations, assumptions or outcomes. Forward looking statements are subject to a range of risk factors. The Company cautions against reliance on any forward-looking statements, particularly in light of the current economic climate, the need for approvals from relevant regulators, changes in consumer shopping behavior and demand in international markets, as well as the costs and implications of any potential litigation. While the Company has prepared this information based on its current knowledge and understanding and in good faith, there are risks, uncertainties and factors beyond the Company’s control which could cause results to differ from projections. The Company will not be liable for the correctness and/or accuracy of the information, nor any differences between the information provided and actual outcomes and reserves the right to change its projections from time to time. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this presentation, subject to disclosure obligations under applicable law and ASX listing rules. This presentation is for information purposes only and is not a product disclosure statement or prospectus, financial product or investment advice or a recommendation to acquire securities. The Company’s results are reported under International Financial Reporting Standards (IFRS). However, this presentation contains non-IFRS financial measures to provide a more comprehensive understanding of the Company’s performance. Non-IFRS measures are not subject to audit or review. All currency referred to in this document is in Australian dollars, unless otherwise stated. 2 For personal use only
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Acknowledgement of Country Bubs acknowledges the Traditional Custodians of the Lands on which we operate. We pay our respects to Elders past and present. 3 Image: Bunurong Marine National Park of Victoria For personal use only
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4 Over 30 years in FMCG, dairy and retail sectors. Most recently CEO of Darigold, the fourth-largest dairy cooperative in the USA, overseeing over $US2B in global sales. 12 years at Fonterra leading commercial operations across USA, Asia, and ANZ culminating in President, Fonterra Americas where he oversaw over $US2B in regional sales. 6 years at Coles Myer in supply chain and finance roles. Joe Coote Chief Executive Officer For personal use only
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Experienced CFO and company director. Previously CFO for Barenbrug Australia, wholly owned subsidiary of the Royal Barenbrug Group 6 years at Nufarm Australia leading Finance and Supply Chain for their wholly owned subsidiary Nuseed Listed and non-listed experience in FMCG and agriculture across Australia, the Netherlands and USA. Responsibility for leading the Finance organisation to drive sound decision making and financial performance across the business. Naomi Verloop Chief Financial Officer 5 For personal use only
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Contents FY25 Financial Results Update by Market Strategy Update For personal use only
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7 Forward focus • Assessing business performance and dynamic global environment • Elevating ambition and aligning execution to deliver our full potential • Strategy update late November 2025 $102.5M Target Revenue > $100M 48% Gross profit % > than 40% Positive Underlying EBITDA 1 $0.6M Positive operating cash flow $6.1M In a challenging operating environment, Bubs delivered on its FY25 commitments 1 Underlying Earnings before Interest, Tax, Depreciation and Amortisation (Underlying EBITDA) is a non-IFRS measure. Non-IFRS measures have not been subject to audit or review. For personal use only
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Income statement $’M FY25 FY24 Revenue 102.5 79.7 Gross Profit 49.1 38.7 Gross profit (%) 48% 49% Other income / (expense) 2.0 0.3 Operating expenses Distribution (7.4) (7.2) Marketing (12.4) (13.9) Administrative and other costs1 (28.8) (37.3) Credit recoveries / (Expected credit losses) 3.1 (0.9) Total Operating expenses (45.6) (59.2) EBITDA2 (loss) / profit 5.5 (20.3) Depreciation & amortisation (0.7) (0.9) Net finance income 1.0 0.7 Income tax expense (0.0) (0.5) Restructuring costs (0.2) 0.0 Net profit / (loss) after tax 5.5 (21.0) Strong demand in key markets delivering revenue growth of 29% to $102.5M Revenue up 29%, with USA being the biggest revenue driver (up 52%) Gross Profit up 27% reflecting Bubs focus on volume, mix and margin in our core markets Operating expenses down 23% reflecting cost reduction initiatives, reduction in one-off expenses and provision release of $3.0M relating to the Alice & Willis legal settlement Underlying EBITDA of $0.6M 3 reflecting focus on expanding high performing SKUs across key markets and reduced operating expenses 1 Administration and other costs do not include depreciation & amortisation and restructuring costs, and is a Non-IFRS measure. Non-IFRS measures have not been subject to audit or review. 2 EBITDA is a non-IFRS term and refers to Earnings before Interest, Tax, Depreciation and Amortisation. Non-IFRS measures have not been subject to audit or review. 3 Underlying Earnings before Interest, Tax, Depreciation and Amortisation (Underlying EBITDA) is a non-IFRS measure. Non-IFRS measures have not been subject to audit or review. Excludes proceeds from insurance claims $1.3m and credit recoveries/ legal settlements of $3.6m Figures in above table may differ to financial statements due to rounding Underlying EBITDA3 profit / (loss) 0.6 (20.3) 8 For personal use only
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Cash and cash equivalents of $17.4M at Jun-25 reflecting continued focus on cash generation for the Group Trade and other receivables increased by $1.3M due to strong revenue growth in all core markets Inventories decreased by $8.1M due to tight supply outlook, demand planning and focus on working capital management Trade and other payables decreased by $7.4M, largely due to timing differences on goat solid purchases Borrowings eliminated due to repayment of the NAB debt facility during FY25, with $10.0M of undrawn headroom now available Balance Sheet $’M Jun-25 Jun-24 Cash and cash equivalents 17.4 17.5 Trade and other receivables 10.6 9.3 Inventories 20.1 28.2 Other current assets 2.8 4.5 Current assets 50.9 59.6 Plant and equipment 3.7 4.0 Right of use assets 0.8 1.3 Intangible assets 1.2 1.2 Other non-current assets 0.6 0.5 Non-current assets 6.3 7.1 Trade and other payables 10.3 17.7 Other current liabilities 3.0 4.8 Borrowings 0.0 5.3 Lease liabilities 0.7 0.7 Current labilities 13.9 28.5 Lease liabilities 0.3 1.0 Other non-current liabilities 0.5 0.4 Non-current liabilities 0.8 1.4 Net Assets 42.5 36.9 Figures in above table may differ to financial statements due to rounding 9 Delivered $42.5M Net Assets due to strong operating result and tight working capital management For personal use only
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Net cash from operating activities increased to $6.1M, a significant improvement of $32.4M over prior year Receipts from customers increased $26.0M from prior year, driven by higher sales revenues on all core product segments, in particular goat IMF sales in USA Payments to suppliers decreased $6.6M due to focus on working capital processes and diligent supply-demand planning Overall cash position has improved significantly with a decrease in cash and cash equivalents of just $0.1M in FY25 despite repayment of $5.3M borrowings Figures in above table may differ to financial statements due to rounding Cash Flow $’M FY25 FY24 Cash flows from operating activities Receipts from customers 103.7 77.7 Payments to suppliers ,employees and government (97.5) (104.1) Interest received 0.3 0.3 Interest paid (0.5) (0.2) Net cash from/(used in) operating activities 6.1 (26.3) Cash flows from investing Activities Purchases of property, plant and equipment (0.1) (0.2) Purchases of intangible assets (0.0) (0.0) Net cash from/(used in) investing activities (0.1) (0.2) Cash flows from financing activities Proceeds from / (repayments of) borrowings (5.3) 3.0 Proceeds from share issue 0.0 17.4 Capital raising costs 0.0 (1.7) Repayment of lease liabilities (0.7) (0.7) Net cash from/(used in) financing activities (6.0) 18.0 Net increase/(decrease) in cash and cash equivalents (0.0) (8.5) Cash and cash equivalents at beginning of financial year 17.5 26.1 Effects of exchange rates on cash held (0.1) Total cash and cash equivalents at the end of the period 17.4 17.5 Delivered $6.1M in positive operating cash flow 10 For personal use only
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• 81% of sales driven by overseas markets, Australia now represents 19% • USA fastest growing market at 52% of total at $53.1M • 3-year sales CAGR 49.1% achieved through profitable national coverage via online and physical stores • China is 21% of total group at $21.1M • 24.4% 3-year sales CAGR achieved through cross border e- commerce (CBEC) and online to offline (O2O) expansion • Australia is 19% of total group at $19.8M • 6.8% 3-year underlying sales CAGR1 • Rest of World is 8% of total group at $8.5M • 27.5% 3-year sales CAGR driven by our Japan and Vietnam markets 11 FY23 FY24 FY25 Australia China USA Rest of World Group Revenue $60.1M $79.7M $102.5M 29% 22% 40% 9% 27% 22% 44% 7% 19% 21% 52% 8% CAGR 30.6% Delivered growth across all key markets, with USA the highlight with strong volume and value growth across online and retail outlets 1 Underlying CAGR is a non-IFRS measure. Non-IFRS measures have not been subject to audit or review. Based on Net Revenue excluding canning services and ingredient sales of $0.6M in FY25 (FY24: $4.1M). For personal use only
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• Strong management of margin, mix and market; USA performance a key driver of the uplift to 48% • Prior year comparatives have been normalized for inventory provisions and loss-making bulk product and ingredient sales 12 1 Underlying gross profit is a non-IFRS measure and excludes net inventory provision / reversal and sale of bulk product / ingredients. Non-IFRS measures have not been subject to audit or review. 2FY24 Underlying 41% Gross Profit %. Reported 49% Gross Profit % 3FY23 Underlying 30% Gross Profit %. Reported -15% Gross Profit % $18 $33 $49 30%3 41%2 48% FY23 FY24 FY25 Underlying Gross Profit1 Underlying Gross Profit $M Underlying Gross Profit % Improved underlying Gross Profit Margin to48% For personal use only
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• Positive operating cash flow (OCF) for last three quarters of FY25 increasing to $6.1M by end Q4 FY25 • OCF impacted in H1 FY26 due to buildup of inventory to support USA demand growth 1 Net Working Capital = Current Assets (excluding cash and cash equivalents), less Trade and other payables. This is a Non-IFRS measure. Non-IFRS measures have not been subject to audit or review. 13 $14.6 $24.3 $23.2 24.3% 30.5% 22.6% FY23 FY24 FY25 Net Working Capital1 Net Working Capital $M NWC/Sales % -14 -12 -10 -8 -6 -4 -2 0 2 4 6 4Q FY23 1Q FY24 2Q FY24 3Q FY24 4Q FY24 1Q FY25 2Q FY25 3Q FY25 4Q FY25 $M Quarterly Net Operating Cash Flow • Disciplined approach to working capital to ensure sufficient funds available to meet short term business obligations • Net Working Capital (NWC)/Sales at 22.6%, reflecting a low point in inventory cycle against a high ambition to grow volume, service customer demand and buffer trade volatility Delivered positive cash flow over 3 consecutive quarters For personal use only
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Update by Market For personal use only
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Source: Circana Mulo+ Year ending 7/13/2025 moving annual total (MAT). All figures on this slide are in AUD @ 0.65 FX rate 15 Kroger Meijer HEB Walmart Target USA has grown to become our leading market in volume and value with sales of $53.1M • 5,725 stores and No.1 position for Amazon Goat IMF • Total IMF powder market $8B, growing at 5% YoY o Premium Natural IMF market size is $770M, growing 47% YoY; Bubs grew $23M (43%) to 9% share o Total Goat IMF market in USA is $189M, growing 124% YoY; Bubs grew $23M (74%) to 26% share • Monitoring US tariff and trade considerations USA $53.1M 52% of total Revenue Target LA store visit 5,725 stores across USA USA product range For personal use only
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• Ongoing engagement with FDA since May 2022. • Successfully completed US Infant Growth Monitoring Study Dec 2024 – the largest of its kind ever conducted1 o Achieved positive results across all measures: Healthy Growth, Tolerance and Satisfaction • Lodged New Infant Formula Submission in June 2025 and notification expected by end of 2025 FDA Transition Guidance & Regulatory Pathway May 2022 FDA exercised Enforcement Discretion for all 6 Bubs Formulas July 2022 FDA announces Bubs can stay in the US under Enforcement Discretion until 18 Oct 2025 Jun 2023 FDA audit of Bubs Deloraine manufacturing facility Dec 2022 FDA issues Bubs a Letter of Acknowledgement for Bubs to proceed with permanent regulatory pathway July 2023 PER (Protein Efficiency Ratio) Study data complete Dec 2024 GMS (Growth Monitoring Study) complete clinical trial enrollment , Jun 2025 Formally lodged NIFS (New Infant Formula Submission) to FDA 31 Dec 2025 Guideline for FDA approval seeking permanent access 161 Review based on 5 published, recently completed, and in progress growth monitoring studies. July 2025 Submitted New Infant Formula Submission with USA FDA for permanent market access Growth Study Satisfaction Survey For personal use only
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• A diversified brand portfolio - Goat, Supreme and CapriLac • Bubs Goat IMF CBEC category share increased from 14% to 20% on major Ecommerce retailers1 with gross value up 15% YoY , outperforming category which declined 22% • Established O2O channel, reaching 1,315 stores through 99 cities in 33 provinces General Trade 1Source: Metrico.com, Tmall & JD.com Goat IMF GMV (CBEC) as at 30/06/2025. $ AUD 17 China growth has focused on Goat IMF within O2O and CBEC with strong growth in CBEC of 15% against category decline of 22% China $21.1M 21% of total Revenue Ecommerce China product range For personal use only
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• Australia’s No.1 Goat IMF with 53.5%2 of sub-category • Competitive home market where we offer a balanced IMF product portfolio of Goat, Organic and Essential • Launch of Bubs Essentials marks strategic expansion into mainstream infant nutrition segment 1 Underlying Net Revenue is a non-IFRS measure. Non-IFRS measures have not been subject to audit or review. Excludes canning services and ingredient sales of $0.6M in FY25 (FY24: $4.1M). 2 Circana Scan Dollars ($000’s), Coles, Woolworths and AU My Chemist Group only – Goat IMF Only. Combined to MAT 29/06/2025 18 We have maintained our leadership position in Australian goat IMF with 53.5% share Australia $19.8M 19% of total Revenue Retail ranging Launch of Essential product Australian product range For personal use only
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19 • Bubs Supreme, Goat & Organic SKUs key growth drivers • Japan - Contributes $4.3M equal to 50% • Vietnam – Contributes $2.4M equal 28%. Total Milk Formula market is $1.7B1 and grew 5.6% YoY , highlighting significant opportunity • Other markets – Contribute $1.9M equal to 22%. Markets include Malaysia, Saudi Arabia, Singapore • Canada - New market launch estimated H2 FY26 Japan Rakuten Vietnam General Trade Channel Rest of World $8.5M 8% of total revenue Japan and Vietnam are our leading growth markets within our Rest of World segment Vietnam product range 1 Source: Euromonitor as at 22/08/2025, Vietnam Milk Formula Retail Value RSP aggregation of milk formula (excluding special) and special baby milk formula. All figures on this slide are in AUD For personal use only
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Strategy updateStrategy Update For personal use only
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USA Growth Engine China Reset Portfolio Optimisation Sweat the Assets Working Capital 52% YoY Revenue growth Application submitted for permanent market access 22% YoY revenue growth From CBEC & O2O markets Focused Portfolio – Infant (Goat & Bovine) and Adult (CapriLac). Refreshed packaging and sizes Deloraine facility well positioned to support future growth FY25 positive operating cash flow Inventory at low point of cycle We are tracking well against our 5-point strategy 21 For personal use only
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Our strategy update will focus on elevating our ambition and aligning execution to deliver our full potential Customer trust Go to market Supply chain Stakeholders Market mapping, Brand marketing, Customer journey, Innovation Digital activation, Targeted geographies, product, channels and partners Service, Quality, Reliability, Efficiency High performing teams, Trading partners, Health care professionals, Regulators 22 Purpose, Vision, Values Shareholder Value For personal use only
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Q & A investors@bubsaustralia.com For personal use only