Annual financial statement
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Name of Entity: Bubs Australia Limited ACN: 060 094 742 1. Reporting Period (current period): 30 June 2026 Previous corresponding period: 30 June 2025 2. Results for announcement to the market Revenue from ordinary activities Increase 9% To $111,857,863 Loss from ordinary activities after tax attributable to members Decrease1 183% To $4,624,673 Loss for the period attributable to members Decrease1 183% To $4,624,673 Underlying EBITDA2,3 Increase 338% To $5,303,772 Dividends Amount per share cents Franked Amount per share cents Final – – Interim – – Current period Previous corresponding period Net tangible assets per share (cents) 4.15 4.62 1. FY26 Loss compared to Profit in FY25. 2. Underlying Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) is a non-IFRS measure, not been subject to audit or review 3. Underlying EBITDA excludes one-off items (proceeds from insurance claim, credit recoveries & legal settlements, regulatory reset, restructuring costs, USA airfreight and USA non-AU tariffs). Record date for determining entitlements to dividends: N/A Additional information supporting the Appendix 4E disclosure requirements can be found in the Financial Report which contains the Directors’ Report and the 30 June 2026 Financial Statements and accompanying notes. This report is based on consolidated financial statements for the year ended 30 June 2026 which have been audited by KPMG. Appendix 4E Preliminary Final Report BUBS AUSTRALIA LIMITED | Appendix 4E I
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2026 Preliminary Final Report bubsaustralia.com BUBS AUSTRALIA LIMITED
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Contents Review of Operations and Financial Results 2 Directors’ Report 5 Remuneration Report (Audited) 11 Auditor’s Independence Declaration 20 Consolidated Statement of Profit or Loss and Other Comprehensive Income 21 Consolidated Statement of Financial Position 22 Consolidated Statement of Changes in Equity 23 Consolidated Statement of Cash Flows 24 Notes to the Financial Statements 25 Directors’ Declaration 51 Consolidated Entity Disclosure Statement 52 Independent Auditor’s Report 53 Other Information 58 Corporate Directory 61 BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 1
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Revenue Bubs Australia Limited and its subsidiaries (referred to as Bubs or the Group) delivered revenue of $111.9 million in FY26, up 9.2% year on year (yoy). United States The best performing market, USA, delivered revenue of $65.8 million, an increase of 24% (FY25: $53.1 million), driven by expanded distribution, continuity of supply and continued growth in the premium infant formula segment. China China revenue was $21.4 million, flat yoy, with growth in consumer demand (sell-out) offset by lower customer orders (sell-in) as excess inventory carried over from FY25 was consumed. Inventory levels have now normalised with sell-in and sell-out rebalanced. China was also impacted by regulatory changes that delayed product availability. Australia Australia delivered revenue of $18.3 million, down 7% YoY (FY25: $19.8 million) as reduced brand visibility, consumer pressures and temporary supply constraints impacted performance. These factors included brand repositioning challenges, Stage 2 Goat supply disruption and intensified competition. In response, second half marketing investment increased to rebuild brand visibility, with early encouraging indicators showing brand awareness increasing 10ppts to 87%1 and market share trends stablising. Rest of World Rest of World revenue was $6.4 million, down 25% yoy (FY25: $8.5 million). Regulatory reset changes impacted product availability. This was particularly impactful in Vietnam and Singapore where trading was paused in second half while the company worked to meet new regulatory requirements. Gross margin The Group delivered a gross profit margin of 39.8% for FY26, compared to 47.8% in FY25. The reduction primarily reflects increased logistics and airfreight costs ($3.0 million) supporting inventory restocking to meet supply continuity for customers across key markets, the costs of meeting changing regulatory requirements ($3.9 million) and the impact of tariffs (USA Non-AU Tariffs were $1.0 million). Operating expenses Operating expenses (including depreciation) increased from $46.5 million to $48.8 million in FY26, reflecting continued investment to support revenue growth. Advertising and promotion (A&P) remained the largest component of operating expenditure, with spend directed towards brand awareness and marketing initiatives to drive sales growth across key markets. Despite the increase in absolute expenditure, operating expenses as a percentage of revenue2 improved to 44%, demonstrating operating leverage as revenue growth outpaced growth in operating costs. 1. Infant Formula Brand Health Tracker – Kantar, May 2026. 2. Operating expenses to revenue ratio includes Depreciation & Amortisation and Share Based payments expense and is a non-IFRS measure. Non-IFRS measures have not been subject to audit or review. Review of Operations and Financial Results 2
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Statutory results The reconciliation to the statutory profit before tax is set out in the table below. FY26 $ FY25 $ (Loss)/Profit before tax (4,624,673) 5,543,841 Less: Net Finance Expense/(Income) 1,225,839 (1,031,699) EBIT1 (3,398,834) 4,512,142 Add: Depreciation and amortisation 1,564,600 734,963 EBITDA1 (1,834,234) 5,247 ,105 Less: Proceeds from insurance claim – (1,259,338) Less: Credit recoveries and legal settlements (825,000) (3,639,565) Add: Regulatory Reset 3,870,715 Add: USA Air Freight 2,979,683 – Add: USA Non-AU Tariff2 959,796 648,690 Add: Restructuring costs 152,811 213,327 Underlying EBITDA3 5,303,772 1,210,219 1 Earnings Before Interest and Tax (EBIT), Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and Underlying EBITDA are non-IFRS measures, not been subject to audit or review. 2 Non-AU tariffs have been restated within FY25 comparatives, not previously included within Underlying EBITDA. 3 Underlying EBITDA excludes one-off items (proceeds from insurance claim, credit recoveries & legal settlements, regulatory reset, restructuring costs, USA airfreight and USA non-AU tariffs). Going concern basis of accounting The Group has prepared the consolidated financial statements for the year ended 30 June 2026 on a going concern basis, which assumes continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. Financial results On 30 June 2026, the Group is in a net current asset position of $32.8 million (2025: $37.0 million). At 30 June 2026, the Group has $9.4 million in available cash and cash equivalents and $10.0 million in committed un-drawn bank facilities (Note C8). The Group made a loss after tax of $4.6 million (FY25 profit: $5.5 million). During the year, the Group extended the facility with National Australia Bank to 31 August 2027 and increased the facility limit to $20.0 million (FY25: $10.0 million) (refer Note C8). Net cash used in operating activities in FY26 were $15.1 million (FY25 net cash inflows: $6.1 million). BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 3
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Review of Operations and Financial Results continued Future financial performance The Directors have considered the Group’s revenue projections and cash flow forecasts based on current market conditions and business plans to determine the appropriateness of preparing the financial report on a going concern basis. The Group acknowledges the inherent uncertainty in its earnings forecast, which assumes attainment of the permanent U.S. Food and Drug Administration (FDA) approval to continue operating in the USA. The FDA continues to facilitate the importation, sale, and distribution of Bubs’ infant formula products while its review process is being finalised and the products remain available in the US market under the FDA’s ‘Enforcement Discretion’ regulatory process. FDA approval to sell in the US market beyond the current review period is an assumption underpinning this assessment. The Directors are confident that the Group will secure permanent FDA approval. The cash flow forecasts prepared assume that FDA approval will be granted and that the Group’s bank facility will be extended beyond the current expiry date. Should these forecasts not be achieved there is a material uncertainty regarding the appropriateness of the going concern basis of accounting and the Group may not be able to realize its assets and extinguish its liabilities in the normal course of business at the amounts stated in the financial report. Notwithstanding this material uncertainty, the Directors consider that it is appropriate to prepare the financial statements on a going concern basis based on the information available at the date of approval. The Consolidated Financial Statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that may be necessary should the Group be unable to continue as a going concern. 4
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Paul Jensen Independent Chair/Non-Executive Director The directors present their report together with the consolidated financial statements of Bubs Australia Limited as a consolidated entity consisting of Bubs Australia Limited (the “Company”) and the entities it controlled (“the Group”) for the financial year ended 30 June 2026 and the auditor’s report thereon. Directors The Directors of the Company at any time during or since the end of the financial year are: • Paul Jensen (appointed Chair 15 September 2025, Board member since 20 March 2023, ceased as Chair of the Audit and Risk Committee 21 April 2026 upon Mr De Petrini’s appointment) • Steve Lin (appointed as Chair of the Nomination and Remuneration Committee 15 September 2025, ceased 18 May 2026 upon Ms Tauber Marcus’ appointment) • Joe Coote (appointed as Chief Executive Officer and Managing Director 28 July 2025 and appointed as Executive Director on 15 September 2025) • Pacal De Petrini (appointed as Independent Non-executive Director, Chair of the Audit and Risk Committee and member of the Nomination and Remuneration Committee 21 April 2026) • Lori Tauber Marcus (appointed as Independent Non-executive Director and Chair of the Nomination and Remuneration Committee 18 May 2026) • Katrina Rathie (resigned as Chair of the Board and the Nomination and Remuneration Committee 15 September 2025) • Reginald Weine (tenure as Chief Executive Officer and Managing Director ended 28 July 2025) Director profiles Paul Jensen is Independent Chair of Bubs and an experienced non-executive director with more than 20 years’ board experience across ASX-listed, public and private organisations. Paul joined the Bubs Board in March 2023 as an Independent Non-Executive Director and Chair of the Audit and Risk Committee. He was appointed Chair of the Board in September 2025. He brings substantial expertise in corporate governance, finance, capital management and corporate strategy, with a strong focus on shareholder value creation, sustainable growth and disciplined financial management. His board experience spans consumer goods, financial services, government, philanthropy and Indigenous affairs. Prior to his non-executive career, Paul held senior executive positions in banking and investment management. He worked internationally with Lloyds Banking Group in New Zealand, the United Kingdom and Australia, and subsequently served as Managing Director of two ASX-listed investment companies. Paul is currently a Non-Executive Director and Treasurer of Australia Made Campaign Limited, the organisation responsible for administering the Australian Made, Australian Grown and ReMade in Australia certification trade marks on behalf of the Australian Government. He is a Fellow of the Australian Institute of Company Directors and holds a Bachelor of Commerce and Administration from Victoria University of Wellington, New Zealand. Directors’ Report BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 5
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Steve Lin Non-Executive Director Pascal De Petrini Independent Non-Executive Director Directors’ Report continued Steve has served on the Bubs Board since 2019 and is based in the United States. He is the Managing Partner of C2 Capital, a private equity investment firm backed by the Alibaba Group and focused on consumer brands and growth opportunities in global markets. C2 Capital is Bubs’ largest shareholder and is committed to supporting the Company’s long- term shareholder value creation strategy. Steve has more than 30 years of investment, operations and management experience across Asia and the United States. He is Managing Partner of C2 Capital, a private equity investment firm focused on consumer brands and growth opportunities in global markets. An experienced director, Steve currently serves on the boards of Stella & Chewy’s, a leading US pet food company, Petcurean, a Canadian pet nutrition company, and KDC/ONE, one of the world’s largest manufacturers of beauty, personal care and home care products. Steve has conducted business in China for more than 30 years and brings extensive experience working with companies, investors and institutions across the region. Prior to joining C2 Capital, he held roles with Morgan Stanley, Goldman Sachs, GMAC Commercial Holding Corp (subsequently Capmark Financial Group) and Laureate Education across New York, Hong Kong and Tokyo. Steve is also active in the not-for-profit and education sectors. He co-founded Hands On Tokyo and previously served on the boards of Xi’an Jiaotong-Liverpool University and Hunan International Economics University. Steve holds a Bachelor of Economics from Harvard University. Pascal joined the Bubs Board in April 2026 as an Independent Non- Executive Director. He serves as Chair of the Audit and Risk Committee and is a member of the Nomination and Remuneration Committee. Based in Singapore, Pascal brings more than 30 years of international leadership experience across the dairy, infant nutrition and consumer goods sectors. Pascal has held senior executive leadership roles with two of the world’s leading nutrition and dairy companies, Danone S.A. and Fonterra Co- operative Group Limited. His executive career included positions as Senior Vice President and Chairman Asia at Danone, Vice President Baby Nutrition Asia Pacific, and Managing Director, Asia Pacific, Middle East and Africa at Fonterra. A highly regarded FMCG executive, Pascal has led major business transformations across Asia Pacific, the Middle East and Europe, with deep expertise in infant nutrition, dairy, beverages, supply chain management and quality systems. He has extensive experience operating in complex and highly regulated international markets and has successfully led businesses ranging from approximately US$100 million to US$3 billion in revenue. Pascal brings strong category expertise in infant formula and dairy, together with a proven track record of building brands, driving growth and delivering operational excellence across multiple international markets. His experience spans end-to-end supply chain management, regulatory affairs, commercial strategy and organisational transformation. Pascal holds a Master of Science in Management from ESSEC Business School and a Master of Science in Engineering from École des Mines de Nancy, France. 6
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Lori Tauber Marcus Independent Non-Executive Director Joe Coote Managing Director & Chief Executive Officer Lori joined the Bubs Board in May 2026 as an Independent Non-Executive Director. She serves as Chair of the Nomination and Remuneration Committee. Based in New York, Lori brings more than 30 years of senior marketing and consumer brand experience across FMCG, retail, consumer health, digital commerce and high-growth consumer businesses. Lori has held senior executive leadership roles with some of the world’s leading consumer companies. Her executive career included 24 years with PepsiCo, where she held a range of senior marketing positions culminating in Senior Vice President, Marketing Activation. She later served as Executive Vice President and Chief Global Brand and Product Officer at Keurig Green Mountain. An experienced listed company director, Lori currently serves as an independent director of Del Monte Corporation (NYSE: DMC). She previously served as an independent director of Primo Water Corporation (NYSE and TSX: PRMW) and Phunware, Inc. (NASDAQ: PHUN), in addition to board roles with other consumer-focused businesses. Lori brings deep expertise in brand strategy, consumer engagement, digital marketing, innovation and commercial growth. Her extensive experience building consumer brands and driving business transformation across global markets provides valuable insight as Bubs continues to expand its presence in key international markets, particularly the United States. Lori holds a Bachelor of Science in Economics (Marketing) from The Wharton School of the University of Pennsylvania. Joe was appointed Chief Executive Officer in July 2025 and joined the Board as Managing Director in September 2025. He brings more than 20 years of global leadership experience across the FMCG, dairy and infant nutrition sectors, with extensive expertise in commercial operations, supply chain management, international market development and business transformation. Prior to joining Bubs, Joe was Chief Executive Officer of Darigold, the fourth- largest dairy cooperative in the United States, where he oversaw more than US$2 billion in global sales. Before Darigold, he spent 12 years with Fonterra in senior leadership roles across New Zealand, Asia and the United States, culminating in his appointment as President, Fonterra Americas, where he was responsible for more than US$2 billion in regional sales. Joe has significant experience leading growth strategies across international markets and has a strong track record in operational excellence, supply chain optimisation and commercial execution. His global industry relationships and deep understanding of the dairy and infant nutrition sectors support Bubs’ strategic priorities across Australia, the United States, China and broader Asian markets. Earlier in his career, Joe held leadership roles with Coles Myer Group, Colgate- Palmolive, GlaxoSmithKline and PwC across Australia, the United States and the United Kingdom. Joe holds a Bachelor of Commerce from the University of Queensland and is a Chartered Accountant. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 7
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Directors’ Report continued Record of attendance at the Board meetings Director attendance at Board and Committee meetings during the year is set out below. Board Meetings Nomination and Remuneration Committee Audit and Risk Committee Held1 Attended2 Held Attended Held Attended Paul Jensen3 12 12 4 4 5 5 Steve Lin4 12 115 4 4 5 4 Pascal De Petrini6 4 4 1 1 2 2 Lori Tauber Marcus7 3 3 1 1 N/A N/A Joe Coote8 10 10 N/A N/A N/A N/A Katrina Rathie9 2 2 1 1 1 1 Reginald Weine10 0 0 N/A N/A N/A N/A 1. Number of scheduled meetings held during the time the Director was a member of the Board or Board Committee 2. Number of scheduled Board or Committee meetings that the Director attended as a member. 3. Paul Jensen ceased as Chair of the Audit and Risk Committee 21 April 2026 upon Mr De Petrini’s appointment 4. Steve Lin was appointed as Chair of the Nomination and Remuneration Committee 15 September 2025, and ceased as Chair 18 May 2026 upon Ms Tauber’s appointment 5. Following a late change to the meeting format, Steve Lin was unable to attend one meeting due to an unavoidable scheduling conflict. 6. Pascal De Petrini was appointed as Independent Non-executive Director, Chair of the Audit and Risk Committee, and member of the Nomination and Remuneration Committee 21 April 2026 7. Lori Tauber Marcus was appointed as Independent Non-executive Director, Chair of the Nomination and Remuneration Committee, and member of the Audit and Risk Committee 18 May 2026 8. Joe Coote was appointed as Chief Executive Officer and Managing Director 28 July 2025 and Executive Director on 15 September 2025 9. Katrina Rathie resigned as Chair of the Board and Chair of the Chair of the Nomination and Remuneration Committee 15 September 2025 10. Reg Weine tenured as Chief Executive Officer and Managing Director ended 28 July 2025 Company secretary Olga Smejkalova was appointed Company Secretary on 20 October 2025 through Acclime Corporate Services Pty Ltd, which provides company secretarial services to the Company. Significant changes in the state of affairs There was no significant change in the state of affairs of the Group during the financial year. Principal activities The Group offers a significant range of infant formula products, toddler milk powder and nutritional products, adult milk powder products, and fresh dairy products, including goat milk-based offerings. There was no significant change in the nature of the Group’s principal activities during the financial year. Environmental regulations The Group is not aware of any matter which requires disclosure with respect to any significant environmental regulation in respect of its operating activities. Events subsequent to the end of the reporting period On 10 July 2026, the Group appointed Chris Rowe as the new Chief Financial Officer, taking over from Naomi Verloop who is no longer a KMP from this date. There have been no subsequent events since 30 June 2026 that have significantly affected or could significantly affect the reported results from operations or the Company’s financial position for the year then ended. 8
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Dividends No dividends have been paid or declared since the start of the financial year (2025: Nil). Indemnification and insurance of directors, officers and auditors The Group has paid insurance premiums in respect of Directors’ and Officers’ liability insurance for current and past Directors and Officers. Insurance does not indemnify the Directors and Officers where there is conduct involving lack of good faith. The Group has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify an officer, director or auditor of the Group against a liability incurred as such an officer, director or auditor. Proceedings on behalf of the group The Group was previously involved in legal proceedings with former customers Alice Trading Ltd (“Alice”) and Willis Trading Ltd (“Willis”), subsidiaries of Alpha Professional Holdings Limited, a company incorporated in Bermuda and listed on the Hong Kong Stock Exchange. In November 2025, the Group reached a settlement with Alice and Willis, resulting in a cash receipt of $825,000, which was received in December 2025. The matter has now been concluded. The directors have given consideration to such other matters which are or may be subject to claims, penalties and litigation as of the reporting date and are of the opinion that any litigation arising from such action would not have a material effect on the Group’s financial performance. Rounding The financial report is presented in Australian dollars and all values are rounded to the nearest dollar. Gender diversity The Group has a strong commitment to diversity and recognised the value of attracting and retaining employees with different backgrounds, gender, culture, knowledge, experience, and abilities. Diversity contributes to the Group’s business success and benefits individuals, clients, teams, shareholders, and stakeholders. The Group’s business policies, practices and behaviours promote diversity and equal opportunity and creates an environment where individual differences are valued, and all employees have the opportunity to realize their potential and contribute to the Group’s success. As at 30 June 2026 As at 30 June 2025 Male Male (%) Female Female (%) Male Male (%) Female Female (%) Board 4.0 80.0 1.0 20.0 3.0 75.0 1.0 25.0 Senior management 4.0 50.0 4.0 50.0 5.0 71.0 2.0 29.0 Employees 51.0 48.6 54.0 51.4 32.0 46.0 37.0 54.0 Total 59.0 50.0 59.0 50.0 40.0 50.0 40.0 50.0 Unissued shares At the date of this report, the Group has no unissued shares under option. Non-audit services No non-audit services were provided by KPMG during the year ended 30 June 2026. Details of amounts paid or payable to the auditor during the year are outlined in Note G3 to the financial statements. A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is attached to this financial report. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 9
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Directors’ Report continued Message from the Chair of the Remuneration and Nomination Committee On behalf of the Board, I am pleased to present the Remuneration Report for the year ended 30 June 2026. During FY26, Bubs continued to execute its strategy of building a sustainable and profitable infant nutrition business, maintaining a disciplined focus on operational efficiency, capital management and long-term shareholder value creation. Against this backdrop, the Committee remained focused on ensuring that remuneration outcomes appropriately reflected Company performance while supporting the attraction, retention and motivation of high-calibre leaders. The Committee’s remuneration framework is designed to align executive reward with the achievement of strategic, operational and financial objectives. Consistent with this philosophy, remuneration outcomes reflect both the Company’s performance during the year and individual contributions to achieving key business priorities. Throughout the year, the Committee reviewed the effectiveness of the Group’s remuneration arrangements to ensure they remain appropriate for the Company’s size, stage of development and strategic objectives. In doing so, we sought to maintain an appropriate balance between rewarding performance, retaining critical talent and aligning the interests of executives with those of shareholders. The Committee also continued to oversee succession planning and broader people and organisational matters. Ensuring Bubs has the leadership capability, skills and culture required to execute its strategy remains a key priority of the Board. Significant changes to the management team included the appointments of Joe Coote (CEO), Jasmin Manner (President USA), Annie Chen (CMO). As we continue to develop our management team, we have also added two independent board members who bring significant FMCG experience and deep commercial insight. The Remuneration Report outlines the Company’s remuneration framework and the remuneration outcomes for Key Management Personnel during FY26. We believe the framework remains aligned with shareholder interests and supports delivery of the Company’s long-term growth ambitions. On behalf of the Board, I thank our employees, management team and fellow directors for their continued commitment and contribution throughout the year. Looking ahead to FY27, the Committee will continue to ensure the Company’s remuneration and talent frameworks support the successful execution of Bubs’ strategy. Our focus remains on aligning executive reward with sustainable business performance, supporting leadership capability and succession planning, and fostering a culture that enables the Company to deliver long-term value for shareholders. Lori Tauber Marcus Independent Chair/Non-Executive Director 10
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This Remuneration Report for the year ended 30 June 2026 forms part of the Directors’ Report. It has been prepared in accordance with the Corporations Act 2001 (Cth) (the Act), the Corporations Regulations 2001 (Cth) and AASB124 Related Party Disclosures and audited as required by the Act. It also includes additional information and disclosures that are intended to enable a deeper understanding by shareholders of Bubs’ remuneration governance and practices. Key management personnel The term key management personnel (KMP) refers to those persons having the authority and responsibility for planning, directing, and controlling the activities of the Group, directly or indirectly and includes any Director of the Group. The disclosures in this report have been audited. The KMP of the Group for the year ended 30 June 2026 were: • Paul Jensen (appointed as Independent Chair and Non-Executive Director 15 September 2025) • Steve Lin (Non-Executive Director) • Pascal De Petrini (appointed as Chair of the Audit and Risk Committee and member of the Nomination and Remuneration Committee 21 April 2026) • Lori Tauber Marcus (appointed as Chair of the Nomination and Remuneration Committee 18 May 2026) • Joe Coote (Chief Executive Officer and Managing Director – appointed 28 July 2025) • Richard Paine (Chief Operating Officer) • Naomi Verloop (resigned as Chief Financial Officer 10 July 2026) • Reg Weine (tenure as Chief Executive Officer and Managing Director ended 28 July 2025) • Katrina Rathie (resigned as Independent Chair and Non-Executive Director 15 September 2025) Remuneration structure The Nomination and Remuneration Committee (the Committee) was established on 1 February 2022 and advises the Board on the policies and practices employed in the remuneration of the KMP. The Committee is also responsible for reviewing all components of the Group’s remuneration practices pertinent to its employees. The Committee makes recommendations to the Board however, all decision-making authority in relation to remuneration remains with the Board. In consultation with external remuneration consultants, the Board’s policy for remunerating executives is to provide market-based remuneration packages comprising a blend of fixed and variable at-risk incentive- based remuneration with clear links between Group and individual employee performance and reward. The Board seeks to set aggregate compensation at a level that provides the Group with the ability to attract and retain KMP of the highest calibre, whilst incurring a cost that is acceptable to shareholders. The amount of aggregate compensation sought to be approved by the Nominations and Remuneration Committee and the manner in which it is apportioned amongst the KMP is reviewed annually. The overall level of other KMP compensation takes into consideration the performance of the Group over multiple years. The following table provides the summary of Group’s earnings for the five years to 30 June 2026: 2026 $ 2025 $ 2024 $ 2023 $ 2022 $ Revenue 111,857,863 102,544,417 79,703,759 60,110,627 89,297,324 EBIT1 (3,398,834) 4,512,142 (21,151,464) (107,551,051) (10,445,126) Underlying EBITDA2 5,303,772 1,210,219 (20,272,830) (105,230,779) (7,751,929) Share price at year end 0.077 0.170 0.130 0.180 0.595 Basic earnings (loss) per share (0.01) 0.01 (0.03) (0.15) (0.02) Total dividend (cents per share) – – – – – 1. Earnings Before Interest and Tax (EBIT) and Underlying Earnings Before Interest, Tax, Depreciation and Amortisation (Underlying EBITDA) are non-IFRS measures, not been subject to audit or review. 2. Underlying EBITDA excludes one-off items (proceeds from insurance claim, credit recoveries & legal settlements, regulatory reset, restructuring costs, USA airfreight and USA non-AU tariffs). Remuneration Report (Audited) BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 11
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Remuneration Report (Audited) continued Fixed remuneration Key Management Personnel’s fixed remuneration is based on a matrix of an individual qualifications, skills and experience, their individual performance and their current level of remuneration relative to the market. Fixed remuneration is reviewed on an annual basis, and where appropriate, is adjusted based on consideration of individual performance and market remuneration movement. The overall level of KMP reward takes into account the performance of the Group over a number of years. This ensures that the Group attracts, motivates, and retains high calibre executives so they can deliver on the Group’s business strategy and contribute to the Group’s ongoing financial performance. Total fixed remuneration (TFR) comprises of base salary, superannuation in accordance with the statutory rates and allowances. The Board reviews and approves all changes to fixed remuneration. Variable remuneration Short term incentive (STI) The STI focuses on performance goals which align with the Group’s direction, driving outcomes, and rewarding high performance over the financial year. STI values are generally calculated as a percentage of fixed remuneration. STI values and performance targets are approved by the Board annually. STI payments are determined and paid annually following the finalisation of audited Group results and are contingent on the achievement of Group financial targets and specific agreed personal objectives. Any FY26 STI awards can be paid in either cash or equity at the discretion of the Board. No STI payments were made in FY26 to KMP. The link between performance and reward in FY26 Each element of remuneration should be designed to work with the other elements of remuneration to produce an appropriate range of remuneration outcomes linked to performance, market benchmarks and the Company’s strategy, as well as working together to incentivise and reward an appropriate range of behaviours. Share rights issued to CEO During FY26, Bubs issued Shares Rights to Joe Coote, Chief Executive Officer & Managing Director (CEO/MD) and were approved by Shareholders and granted on 20 November 2025. The following performance rights were issued: Sign-on retention rights (SOR Rights) SOR Rights have “time-based” vesting conditions where period held determines the number of shares that will vest. • 1,000,000 share rights – These rights vested upon completion of the service period on 31 July 2026; • 1,250,000 share rights – These rights vested upon completion of the service period on 31 July 2027; • 1,500,000 share rights – These rights vested upon completion of the service period on 31 July 2028. Share rights issued to CEO, COO and CFO LTI Performance Rights During FY26 Bubs issued the following share rights which are subject to an indexed total shareholder return (TSR) vesting condition: • 3,291,123 share rights issued to Joe Coote (CEO) scheduled to vest on 30 June 2028. This was subject to Shareholder approval on 20 November 2025 and valued at $0.076. • 1,763,853 share rights were issued to Richard Paine (COO) vesting on 30 June 2028 valued at $0.076. • 1,645,562 share rights were issued to Naomi Verloop (CFO) vesting on 30 June 2028 valued at $0.076. 12
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The vesting of the Rights will be determined by comparing the Company’s TSR against the TSR of the S&P/ASX Small Ordinaries Index from 1 July 2025 to 30 June 2028 (the Measurement Period). The number of rights that will vest is dependent on the following vesting schedule: Performance Level Bubs TSR relative to S&P/ASX Small Ordinaries Index % of Rights which vest Stretch ≥ index TSR + 10% TSR CAGR 100% Between target and stretch > index TSR & < index TSR + 10% TSR CAGR Pro-rata Target and threshold ≥ index TSR 50% Below threshold < index TSR 0% Executive contracts The remuneration and other terms of employment for KMP executives are covered in formal employment contracts. The Group may terminate an executive immediately for cause, in which case the executive is not entitled to any payment other than the value of total fixed remuneration (and accrued entitlements) up to the termination date. KMP executive Notice period by the Group Notice period by Executive Payment in lieu of notice Joe Coote (Chief Executive Officer and Managing Director) Appointed 28 July 2025 6 months 6 months Yes Richard Paine (Chief Operating Officer) 3 months 3 months Yes Naomi Verloop (Chief Financial Officer) Appointed on 10 February 2025, resigned on 10 July 2026 3 months 3 months Yes Reg Weine (Chief Executive Officer and Managing Director) Appointed on 28 August 2023, tenure ended on 28 July 2025 6 months 6 months Yes Non-Executive Directors’ remuneration The Group’s remuneration policy for Non-Executive Directors aims to ensure that the Group can attract and retain suitably qualified and experienced Directors having regard to: • the level of fees paid to Non-Executive Directors of other comparable Australian listed companies; • the growing size and complexity of the Group’s operations; • the responsibilities and work requirements of Board members; and • the skills and diversity of Board members. Under the ASX Listing Rules, the total amount paid to all Non-Executive Directors in any financial year must not exceed the amount fixed in a general meeting of the Group. This amount is currently $500,000 (2025: $500,000) as determined by Shareholders at the AGM held on 14 November 2023. The Board’s present policy for Non-Executive Directors, the Chair of the Nominations and Remuneration Committee and the chair of the Audit and Risk Committee is set out below. The annual remuneration rate for the year ended 30 June 2026 and exclusive of superannuation. Position Annual Remuneration Chair of the Board $175,100 Non-Executive Director $103,000 Chair of Nomination and Remuneration Committee & Chair of the Audit & Risk Committee $20,600 Committee member $10,300 Other related party transactions with KMP No key management personnel or any other related party has entered into any other contracts with the Group since the end of the previous financial year. All of the above transactions were considered to be on an arms’ length basis. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 13
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Remuneration Report (Audited) continued Details of the nature and amount of each element of the remuneration Table A(1): Remuneration for Executive KMP Short-term Post- employment Other long-term Year Salary & fees $ Annual Leave $ Short-term incentive $ Super- annuation $ Long service leave $ Share-based Payments – Share rights $ Total Performance related % Joe Coote1 2026 615,528 50,308 – 30,000 10,056 184,800 890,692 21% 2025 – – – – – – – – Reg Weine2 2026 458,862 55,531 – 18,166 7,049 (297,539) 242,069 0% 2025 738,629 55,536 676,710 29,932 12,024 343,619 1,856,450 47% Richard Paine3 2026 420,940 29,540 – 30,000 6,395 105,728 592,603 18% 2025 409,360 28,617 213,037 29,932 6,196 20,351 707,493 33% Naomi Verloop4 2026 372,212 27,404 – 25,000 5,933 97,102 527,651 18% 2025 136,258 10,209 76,233 12,472 2,204 18,986 256,362 37% Robin Johnston5 2026 – – – – – – – – 2025 66,277 6,872 – 6,867 – – 80,016 0% Aaliyah Nyathi6 2026 – – – – – – – – 2025 98,200 6,354 – 9,669 – – 114,223 0% 2026 1,867 ,542 162,783 0 103,166 29,433 90,091 2,253,015 2025 1,448,723 107 ,588 965,980 88,872 20,423 382,955 3,014,542 1. STI and LTI share rights issued to the CEO and approved by the AGM on 20 November 2025. 2. Reg Weine’s tenure as CEO ended on 28 July 2025 and was no longer deemed a KMP from this date. 3. LTI share rights issued to the COO 27 March 2025 and 23 December 2025. 4. Naomi Verloop was appointed as CFO on 10 February 2025 and was deemed a KMP from this date. STI share rights were issued to the CFO 27 March 2025 and 23 December 2025. Naomi Verloop resigned as CFO on 10 July 2026 and was no longer deemed a KMP from this date. 5. Robin Johnston resigned as CFO on 26 June 2024, effective 27 September 2024 post the release of FY24 annual report and was no longer deemed a KMP from this date. 6. Aaliyah Nyathi was appointed as Interim CFO on 1 October 2024, resigned effective 10 February 2025 and was no longer deemed a KMP from this date. 14
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Table A(2): Remuneration for Non-Executive Directors Short-term Post Employment Other long-term Year Director fees $ Non- monetary $ Super- annuation $ Long service leave $ Share-based Payments – options $ Total Performance related % Paul Jensen 2026 219,365 – – – – 219,365 – 2025 149,300 – – – – 149,300 – Steve Lin1 2026 – – – – – – – 2025 – – – – – – – Pascal De Petrini 2026 25,679 – – – – 25,679 – 2025 – – – – – – – Lori Marcus 2026 14,561 – – – – 14,561 – 2025 – – – – – – – Katrina Rathie 2026 52,891 – 6,347 – – 59,238 – 2025 206,000 – 23,690 – – 229,690 – Total 2026 312,496 – 6,347 – – 318,843 2025 355,300 – 23,690 – – 378,990 1. Steve Lin’s services were remunerated by C2 Capital Partners in FY25 and FY26. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 15
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Remuneration Report (Audited) continued Fully paid ordinary shares of Bubs Australia Limited Table B: Movement in the shares of Bubs held, directly, indirectly or beneficially, by each KMP , including their related parties. Year At the beginning of the year Purchase of shares Other change Shares disposed At the end of the year Paul Jensen1 2026 500,000 1,630,890 – – 2,130,890 2025 460,000 40,000 – – 500,000 Steve Lin2 2026 – – – – – 2025 – – – – – Katrina Rathie3 2026 1,335,970 164,030 – – 1,500,000 2025 1,335,970 – – – 1,335,970 Reg Weine4 2026 1,800,000 1,000,000 – (450,000) 2,350,000 2025 600,000 1,200,000 – – 1,800,000 Robin Johnston 2026 – – – – – 2025 250,000 – – (250,000) – Richard Paine 2026 561,967 – – – 561,967 2025 561,967 – – – 561,967 1. Shares are held by Taranaki Holdings Pty Ltd. 2. On 30 June 2025 and 30 June 2026, 76,288,510 shares were held by C2 Capital Partners, of which Steve Lin is the Managing Director. 3. Shares are held by Rathie Superannuation Pty Limited. 4. Shares are held by Barnbougle Investments Pty Limited and Muirfield Securities Pty Ltd. Reg Weine converted 1,000,000 share rights following the release of FY25 accounts into ordinary shares. 16
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Short term incentive share rights Table C: Short term incentive share-based rights granted as remuneration to KMP . Year Number of share Rights held at the beginning of the year Grant date Number of share rights granted Fair Value of share rights granted Vesting date Number vested Number Exercised Number Expired Number lapsed Number of share rights held at the end of the year Reg Weine1 2026 – – – – – – – – – – 2025 1,000,000 – – – – 1,000,000 (1,000,000) – – – 1. Reg Weine converted 1,000,000 STI share rights following the release of FY24 accounts into ordinary shares. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 17
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Remuneration Report (Audited) continued LTI share rights LTI Share rights granted to KMP Movement in the LTI share rights granted to KMP during the year. Year Number of share lights held at the beginning of the year Grant date Number of share rights granted Fair Value of share rights granted at grant date Vesting date Number vested Number Exercised Number Expired Number lapsed Number of share rights held at the end of the year Joe Coote1 2026 – 20 Nov 25 1,000,000 76,000 31 Jul 26 – – – – 1,000,000 2026 – 20 Nov 25 1,250,000 95,000 31 Jul 27 – – – – 1,250,000 2026 – 20 Nov 25 1,500,000 114,000 31 Jul 28 – – – – 1,500,000 2026 – 20 Nov 25 3,291,123 250,125 30 Jun 28 – – – – 3,291,123 2025 – – – – – – – – – – Reg Weine 2026 11,185,289 21 Nov 24 – 693,488 30 Jun 27 – – – (11,185,289)2 – 2026 7,180,328 14 Nov 23 – 359,016 Note3 – – – (4,786,885)2 2,393,4432 2026 1,000,000 14 Nov 23 – 170,000 30 Jun 25 – (1,000,000)1 – – – 2026 1,000,000 14 Nov 23 – 170,000 30 Jun 26 – – – (1,000,000)2 – 2025 – 21 Nov 24 11,185,289 693,488 30 Jun 27 – – – – 11,185,2892 2025 7,180,328 14 Nov 23 – 359,016 Note3 – – – – 7,180,3282 2025 1,000,000 14 Nov 23 – 170,000 30 Jun 25 1,000,0001 – – – 1,000,000 2025 1,000,000 14 Nov 23 – 170,000 30 Jun 26 – – – – 1,000,0002 Richard Paine 2026 2,325,371 27 Mar 25 – 176,728 30 Jun 27 – – – – 2,325,371 2026 – 23 Dec 25 1,763,853 134,053 30 Jun 28 – – – – 1,763,853 2025 – 27 Mar 25 2,325,371 176,728 30 Jun 27 – – – – 2,325,371 Naomi Verloop 2026 2,169,421 27 Mar 25 – 164,876 30 Jun 27 – – – – 2,169,421 2026 – 6 Jan 25 1,645,562 125,063 30 Jun 28 – – – – 1,645,562 2025 – 27 Mar 25 2,169,421 164,876 30 Jun 27 – – – – 2,169,421 1. Reg Weine met his service condition at 30 June 2025, therefore his 2nd tranche of sign-on rights vested on 30 June 2025 and exercised on 15 September 2025. 2. Reg Weine departed from the company on 28 July 2025 and the following LTI sign-on retention rights and performance rights were forfeited: • 1,000,000 sign-on retention rights issued in FY24 • 4,786,885 LTI performance rights issued in FY24 (2,393,443 remain on foot) • 11,185,289 LTI performance rights issued in FY25. 3. Rights are scheduled to vest following the release of the Company’s FY26 audited financial results to the ASX. 18
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LTI share rights LTI Share rights granted to KMP Movement in the LTI share rights granted to KMP during the year. Year Number of share lights held at the beginning of the year Grant date Number of share rights granted Fair Value of share rights granted at grant date Vesting date Number vested Number Exercised Number Expired Number lapsed Number of share rights held at the end of the year Joe Coote1 2026 – 20 Nov 25 1,000,000 76,000 31 Jul 26 – – – – 1,000,000 2026 – 20 Nov 25 1,250,000 95,000 31 Jul 27 – – – – 1,250,000 2026 – 20 Nov 25 1,500,000 114,000 31 Jul 28 – – – – 1,500,000 2026 – 20 Nov 25 3,291,123 250,125 30 Jun 28 – – – – 3,291,123 2025 – – – – – – – – – – Reg Weine 2026 11,185,289 21 Nov 24 – 693,488 30 Jun 27 – – – (11,185,289)2 – 2026 7,180,328 14 Nov 23 – 359,016 Note3 – – – (4,786,885)2 2,393,4432 2026 1,000,000 14 Nov 23 – 170,000 30 Jun 25 – (1,000,000)1 – – – 2026 1,000,000 14 Nov 23 – 170,000 30 Jun 26 – – – (1,000,000)2 – 2025 – 21 Nov 24 11,185,289 693,488 30 Jun 27 – – – – 11,185,2892 2025 7,180,328 14 Nov 23 – 359,016 Note3 – – – – 7,180,3282 2025 1,000,000 14 Nov 23 – 170,000 30 Jun 25 1,000,0001 – – – 1,000,000 2025 1,000,000 14 Nov 23 – 170,000 30 Jun 26 – – – – 1,000,0002 Richard Paine 2026 2,325,371 27 Mar 25 – 176,728 30 Jun 27 – – – – 2,325,371 2026 – 23 Dec 25 1,763,853 134,053 30 Jun 28 – – – – 1,763,853 2025 – 27 Mar 25 2,325,371 176,728 30 Jun 27 – – – – 2,325,371 Naomi Verloop 2026 2,169,421 27 Mar 25 – 164,876 30 Jun 27 – – – – 2,169,421 2026 – 6 Jan 25 1,645,562 125,063 30 Jun 28 – – – – 1,645,562 2025 – 27 Mar 25 2,169,421 164,876 30 Jun 27 – – – – 2,169,421 1. Reg Weine met his service condition at 30 June 2025, therefore his 2nd tranche of sign-on rights vested on 30 June 2025 and exercised on 15 September 2025. 2. Reg Weine departed from the company on 28 July 2025 and the following LTI sign-on retention rights and performance rights were forfeited: • 1,000,000 sign-on retention rights issued in FY24 • 4,786,885 LTI performance rights issued in FY24 (2,393,443 remain on foot) • 11,185,289 LTI performance rights issued in FY25. 3. Rights are scheduled to vest following the release of the Company’s FY26 audited financial results to the ASX. This Directors’ report is signed in accordance with a resolution of the board of Directors: Paul Jensen Independent Chair and Non-Executive Director Melbourne Dated: 27 August 2026 BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 19
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KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Bubs Australia Limited I declare that, to the best of my knowledge and belief, in relation to the audit of the financial report of Bubs Australia Limited for the financial year ended 30 June 2026 there have been: i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and ii. no contraventions of any applicable code of professional conduct in relation to the audit. KPM_INI_01 KPMG Julie Carey Partner Melbourne 27 August 2026 Auditor’s Independence Declaration 20
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Note 2026 $ 2025 $ Revenue B2 111,857,863 102,544,417 Cost of sales B3 (67,371,451) (53,487,740) Gross profit 44,486,412 49,056,677 Other Income B6 942,271 1,960,542 Distribution and selling costs (7,549,256) (7,371,787) Marketing and promotion costs (15,017,842) (12,428,338) Administrative and other costs B3 (26,289,098) (29,778,616) Credit recoveries B3 28,680 3,073,664 Operating (loss)/profit (3,398,834) 4,512,142 Interest income 194,480 342,359 Interest expense B3 (619,607) (487,264) Finance (cost)/income (800,712) 1,176,604 Net Finance (cost)/income (1,225,839) 1,031,699 (Loss)/Profit before tax (4,624,673) 5,543,841 Income tax expense B5 – – (Loss)/Profit for the year after tax (4,624,673) 5,543,841 Other comprehensive income Exchange difference on translation of foreign operations 903,934 (373,929) Other comprehensive income/(loss) for the year, net of tax 903,934 (373,929) Total comprehensive (loss)/profit for the year (3,720,739) 5,169,912 Profit/(loss) per share Basic (loss)/profit per share (dollars) B4 (0.01) 0.01 Diluted (loss)/profit per share (dollars) B4 (0.01) 0.01 The accompanying notes form part of these consolidated financial statements. Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2026 BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 21
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Note 2026 $ 2025 $ Assets Current Assets Cash and cash equivalents D3 9,412,498 17,426,313 Trade and other receivables C1 12,574,987 10,607,740 Inventories C2 36,266,972 20,060,471 Other assets C3 2,202,026 2,797,859 Total Current Assets 60,456,483 50,892,383 Non-Current Assets Plant and equipment C4 3,792,775 3,730,969 Right of use assets C7 5,505,542 762,897 Intangible assets C5 1,915,296 1,217,095 Other assets C3 567,739 567,738 Total Non-Current Assets 11,781,352 6,278,699 Total Assets 72,237 ,835 57 ,171,082 Liabilities Current Liabilities Trade and other payables C6 15,536,625 10,293,763 Lease liabilities C7 983,893 670,709 Borrowings C8 10,000,000 – Provisions C9 1,171,969 2,964,962 Total Current Liabilities 27,692,487 13,929,434 Non-Current Liabilities Lease liabilities C7 4,939,701 296,791 Provisions C9 577,959 468,300 Total Non-Current Liabilities 5,517,660 765,091 Total Liabilities 33,210,147 14,694,525 Net Assets 39,027 ,688 42,476,557 Equity Issued capital D5 356,757,916 356,757,916 Share based payments reserve D6 12,962,847 12,690,977 Foreign currency translation reserve (95,342) (999,276) Accumulated losses (330,597,733) (325,973,060) Total Equity 39,027 ,688 42,476,557 The accompanying notes form part of these consolidated financial statements. Consolidated Statement of Financial Position As at 30 June 2026 22
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Issued Capital Share Based Payments Reserve Foreign Currency Translation Reserve Accumulated Losses Total Equity 2026 $ $ $ $ $ Balance at 1 July 2025 356,757 ,916 12,690,977 (999,276) (325,973,060) 42,476,557 Comprehensive income Profit for the year – – – (4,624,673) (4,624,673) Other comprehensive loss – – 903,934 – 903,934 Total comprehensive income – – 903,934 (4,624,673) (3,720,739) Other equity transactions: Share based payment expense D6 – 271,870 – – 271,870 Balance at 30 June 2026 356,757 ,916 12,962,847 (95,342) (330,597 ,734) 39,027 ,688 The accompanying notes form part of these consolidated financial statements. Issued Capital Share Based Payments Reserve Foreign Currency Translation Reserve Accumulated Losses Total Equity 2025 $ $ $ $ $ Balance at 1 July 2024 356,757 ,916 12,256,032 (625,347) (331,516,901) 36,871,700 Comprehensive income Loss for the year – – – 5,543,841 5,543,841 Other comprehensive loss – – (373,929) – (373,929) Total comprehensive loss – – (373,929) 5,543,841 5,169,912 Other equity transactions: Share based payment expense D6 – 434,945 – – 434,945 Balance at 30 June 2025 356,757 ,916 12,690,977 (999,276) (325,973,060) 42,476,557 The accompanying notes form part of these consolidated financial statements. Consolidated Statement of Changes in Equity For the year ended 30 June 2026 BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 23
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Note 2026 $ 2025 $ Cash flows from operating activities Receipts from customers 113,044,615 103,749,841 Payments to suppliers, employees and government (127,754,091) (97,473,016) Interest received 194,480 342,359 Interest paid (623,248) (487,264) Net cash (used in)/from operating activities D4 (15,138,244) 6,131,920 Cash flows from investing activities Purchases of plant and equipment (506,261) (83,014) Purchases of intangible assets (704,760) (35,096) Net cash (used in) investing activities (1,211,022) (118,110) Cash flows from financing activities Proceeds from borrowings 10,000,000 2,000,000 Repayment of borrowings – (7,283,866) Payment of lease liabilities (1,699,995) (746,257) Net cash from/(used in) financing activities 8,300,005 (6,030,123) Net increase/(decrease) in cash and cash equivalents (8,049,261) (16,313) Effect of exchange rate changes on cash 35,446 (80,848) Cash and cash equivalents at the beginning of the financial year 17,426,313 17,523,474 Total cash and cash equivalents at the end of the year 9,412,498 17 ,426,313 The accompanying notes form part of these financial statements. Consolidated Statement of Cash Flows For the year ended 30 June 2026 24
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A. Basis of preparation Corporate information The consolidated financial statements cover Bubs Australia Limited as a consolidated entity consisting of Bubs Australia Limited and the entities it controlled (“the Group”) for the year ended 30 June 2026. The financial report is presented in Australian dollars, which is Bubs Australia Limited’s functional and presentational currency. The Group is a for-profit entity that is a listed public company limited by shares, incorporated and domiciled in Australia. The Group’s principal activity is the manufacturing and sale of infant formula products, adult goat milk powder and fresh dairy products. Basis of preparation The consolidated financial statements are general-purpose financial statements, which have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) and the Corporations Act 2001. These consolidated financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board (‘IASB’). The consolidated financial statements, apart from the cash flow information and deferred consideration payable, have been prepared on an accruals basis and are based on historical costs. Going concern basis of accounting The Group have prepared the consolidated financial statements for the year ended 30 June 2026 on a going concern basis, which assumes continuity of normal business activities and the realization of assets and settlement of liabilities in the ordinary course of business. Financial results On 30 June 2026, the Group is in a net current asset position of $32.8 million (2025: $37.0 million). At 30 June 2026, the Group has $9.4 million in available cash and cash equivalents and $10.0 million in committed un-drawn bank facilities (Note C8). The Group made a FY26 loss after tax of $4.6 million (FY25 profit: $5.5 million). During the year, the Group extended the facility with National Australia Bank to 31 August 2027 and increased the facility limit to $20.0 million (FY25: $10.0 million) (Note C8). Net cash flows used in operating activities in FY26 were $15.1 million (FY25 inflows: $6.1 million). Future financial performance The Directors have considered the Group’s revenue projections and cash flow forecasts based on current market conditions and business plans to determine the appropriateness of preparing the financial report on a going concern basis. The Group acknowledges the inherent uncertainty in its earnings forecast, which assumes attainment of the permanent U.S. Food and Drug Administration (FDA) approval to continue operating in the USA. The FDA continues to facilitate the importation, sale, and distribution of Bubs’ infant formula products while its review process is being finalised and the products remain available in the US market under the FDA’s ‘Enforcement Discretion’ regulatory process. FDA approval to sell in the US market beyond the current review period is an assumption underpinning this assessment. The Directors are confident that the Group will secure permanent FDA approval. The cash flow forecasts prepared assume that FDA approval will be granted and that the Group’s bank facility will be extended beyond the current expiry date. Should these forecasts not be achieved there is a material uncertainty regarding the appropriateness of the going concern basis of accounting and the Group may not be able to realize its assets and extinguish its liabilities in the normal course of business at the amounts stated in the financial report. Notwithstanding this material uncertainty, the Directors consider that it is appropriate to prepare the financial statements on a going concern basis based on the information available at the date of approval. The Consolidated Financial Statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that may be necessary should the Group be unable to continue as a going concern. Notes to the Financial Statements For the year ended 30 June 2026 BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 25
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Notes to the Financial Statements continued New, revised or amending accounting standards and interpretations adopted AASB 18 Presentation and Disclosure in Financial Statements (AASB 18) is a new accounting standard that replaces AASB 101 Presentation of Financial Statements. AASB 18 issued in June 2024, and it incorporates International Financial Reporting Standard 18 (IFRS 18). The new standard is effective for the Group’s consolidated financial statements for the reporting period beginning on 1 July 2027. The Group will adopt the standard in the period it is effective. The standard is expected to affect the presentation of certain line items within the consolidated statement of comprehensive income (SOCI) and notes to financial statements but will not affect the recognition or subsequent measurement of items disclosed. New accounting standards and interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting year ended 30 June 2026. IFRS 18 was issued in April 2024 and replaces IAS 1 Presentation of Financial Statements. The new standard introduces new requirements for the Statement of Profit or Loss, including: • new categories for the classification of income and expenses into operating, investing and financing categories, and • presentation of subtotals for “operating profit” and “profit before financing and income taxes” . Additional disclosure requirements are introduced for management-defined performance measures and new principles for aggregation and disaggregation of information in the notes and the primary financial statements and the presentation of interest and dividends in the statement of cash flows. The new standard is effective for annual periods beginning on or after 1 January 2027 and will first apply to the Group for the financial year ending 30 June 2028. This new standard is not expected to have an impact on the recognition and measurement of assets, liabilities, income and expenses, however there will likely be changes in how the Statement of Profit or Loss and Statement of Financial Position line items are presented as well as some additional disclosures in the notes to the financial statements. The Group is in the process of assessing the impact of the new standard. Material accounting judgements and estimates The preparation of the financial statements requires management to make judgements, estimates and assumptions. The most material use of judgements and estimates has been applied to the following areas. Refer to the respective notes for additional details. Reference Recoverability of trade and other receivables Note C1 Valuation of inventory Note C2 26
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B. Group Performance This section explains the results and performance of the Group for the year, including segment information, earnings per share and taxation. B1. Operating segments Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker (the Board) in order to allocate resources to the segment and assess its performance. In FY25 and FY26, the Group had identified a single operating segment being the sale of nutritional food and adult powder. Accordingly, the financial information presented in the consolidated statement of profit or loss and other comprehensive income, and the consolidated statement of financial position was the same as that presented to the chief operating decision maker. B2. Revenue Geographic information 2026 $ 2025 $ Australia 18,317,632 19,781,900 China 21,359,244 21,090,653 USA 65,812,238 53,147,521 Rest of World 6,368,749 8,524,343 Total 111,857,863 102,544,417 The revenue information above is based on the locations of the customers. The Group had three external customers who generated greater than 10 percent of the Group’s revenue at 30 June 2026 amounting to $51,507,518 (2025: two customers amounting to $29,789,454). 99.6% of the Group’s fixed assets are located in Australia. Set out below is the disaggregation of the Group’s revenue from contracts with customers: 2026 $ 2025 $ Sale of Infant Formula 97,276,723 88,424,783 Sale of Nutritional Products 787,973 1,142,900 Sale of Adult Goat Dairy Products 12,215,553 12,410,116 Sale of Raw Materials 1,577,614 566,618 Total revenue from contracts with customers 111,857,863 102,544,417 Recognition and measurement Under AASB 15 Revenue from Contracts with Customers, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The standard requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 27
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Notes to the Financial Statements continued Sale of products The Group has identified the following revenue streams by product type: • Infant Formula • Nutritional Products • Adult Goat Dairy Products • Raw materials For all revenue streams, the Group’s contracts with customers for the sale of products include one performance obligation. For most customers the Group has concluded that revenue from the sale of products should be recognised at the point in time when the products are transferred to the customer, generally on delivery of the products or when the goods are picked up at the Group’s warehouse. Customers obtain control of products when the goods are delivered to and have been accepted by the customer. If the order is requested for pickup, control passes when the goods are picked up by the customer. Some contracts contain trade spend terms, early payment discounts and may permit the customer to return an item for replacement or refund. The Group recognises revenue from the sale of goods measured at the fair value of the consideration received or receivable, net of returns, volume rebates and marketing contribution. For the year ended 30 June 2026, the Group has not recognised any right to recover or refund liability as there is no expectation for goods to be returned. Rebates and marketing contribution Rebates and marketing contribution with customers are recognised as a reduction of revenue. Under AASB 15 Revenue from Contracts with Customers, marketing contributions give rise to variable consideration. To estimate the variable consideration to which it is entitled, the Group applies the ‘most likely amount method’ for contracts with marketing contribution. The selected method that best predicts the amount of variable consideration is primarily driven by the marketing contribution agreed with the customers. The Group then applies the requirements on constraining estimates of variable consideration and recognises a refund liability for the expected future rebates. Key estimate and judgement The Group estimates variable consideration to be included in the transaction price for the sale of products with rebates and market contribution. The Group estimates the expected volume based on customer forecasts and accumulated purchases to date. 28
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B3. Expenses 2026 $ 2025 $ Cost of sales Production costs 67,127,140 55,566,760 Net inventories provision/(reversal) 244,311 (2,079,020) Total 67,371,451 53,487 ,740 Included in administrative and other expenses are the following: Accountancy and legal fees 1,682,111 2,039,079 Insurance 1,459,826 1,381,043 Travel costs 854,223 555,802 Consultancy fees 1,564,273 1,665,879 Occupancy costs 924,206 761,120 Depreciation and amortisation 1,271,423 734,963 Total 7 ,756,062 7 ,137 ,886 Employee costs Wages and salaries 13,301,134 15,437,497 Superannuation 1,007,108 1,019,504 Share based payments 271,870 434,945 Total 14,580,112 16,891,946 Interest expense Interest expense 221,370 426,564 Interest expense on lease liabilities 398,237 60,700 Total 619,607 487 ,264 Expected Credit Losses/(Credit recoveries) Credit recoveries due to legal settlement – (2,987,588) Expected credit losses/(Other credit recoveries) 28,680 (86,076) Total 28,680 (3,073,664) As a result of the arbitration award against Alice Trading Ltd (Alice), the Company recognised a credit recovery of $3.0 million in FY25. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 29
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Notes to the Financial Statements continued B4. Earnings per share (EPS) 2026 $ 2025 $ (Loss)/Profit attributable to the Group used in calculating basic and diluted EPS/(LPS) (4,624,673) 5,543,841 Weighted average number of ordinary shares for basic EPS 893,921,247 892,957,435 Basic EPS/(LPS) (dollars) (0.01) 0.01 Diluted EPS/(LPS) (dollars) (0.01) 0.01 Recognition and measurement Basic EPS is calculated as net profit attributable to the Group divided by the weighted average number of ordinary shares outstanding during the financial year. Diluted EPS adjusts the figures used in the determination of basic earnings per share to take into account the after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. B5. Income taxes 2026 $ 2025 $ Consolidated profit or loss Income tax (benefit)/expense reported in the statement of profit or loss – – Numerical reconciliation of income tax benefit and tax at the statutory rate Accounting profit/(loss) before income tax (4,624,673) 5,543,841 Income tax (benefit)/expense calculated at 30% (2025 30%) (1,387,402) 1,663,152 Tax effect of amounts not taxable in calculating income tax benefit Share based payments 81,561 130,484 Non-deductible costs 7,794 56,893 Income tax losses not recognised 1,368,547 342,061 Temporary difference not recognised (70,500) (2,192,590) Income tax (benefits)/expense – – 30
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Deferred tax assets/(liabilities) arise from the following: 2026 Opening Balance Recognised in Profit or Loss Recognised in Equity Closing Balance Trade and other receivables (1,577,218) 454,876 – (1,122,342) Inventories (696,640) (360,810) – (1,057,450) Intangible assets 355,926 (540) – 355,386 Plant and equipment (89,978) (697) – (90,675) Right of use assets 228,869 1,422,793 – 1,651,662 Lease liabilities (290,250) (1,486,828) – (1,777,078) Trade and other payables (292,153) 242,356 – (49,797) Provisions (629,544) 131,997 – (497,547) Carried forward tax losses 3,447,701 (595,905) – 2,851,796 Capital raising costs (456,713) 192,758 – (263,955) – – – – 2025 Opening Balance Recognised in Profit or Loss Recognised in Equity Closing Balance Trade and other receivables (2,837,901) 1,260,683 – (1,577,218) Inventories (1,364,407) 667,767 – (696,640) Intangible assets 360,433 (4,507) – 355,926 Plant and equipment (93,278) 3,300 – (89,978) Right of use assets 400,620 (171,751) – 228,869 Lease liabilities (514,127) 223,877 – (290,250) Trade and other payables (86,129) (206,024) – (292,153) Provisions (403,586) (225,958) – (629,544) Carried forward tax losses 4,990,629 (1,542,928) – 3,447,701 Capital raising costs (452,254) (4,459) – (456,713) – – – – The income tax expense or benefit for the year is the tax payable on that year’s taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior years, where applicable. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: • When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or • When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, the timing of the reversal can be controlled, and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously. Bubs Australia Limited and its 100% owned Australian resident subsidiaries formed a tax consolidated group (‘TCG’) and Bubs Australia Limited is the head entity of the tax consolidated group. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 31
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Notes to the Financial Statements continued Key estimate and judgement Recovery of deferred tax assets Judgement is required to be made by the Group in assessing whether deferred tax assets and certain deferred tax liabilities are recognised on the consolidated statement of financial position. As detailed above, in the year ended 30 June 2026, Bubs has recognised deferred tax assets up to the carrying amount of deferred tax liabilities. Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be used. Probable is considered more likely than not. Judgement is required when deferred tax assets are reviewed at each reporting date. Deferred tax assets may be reduced to the extent that it is no longer probable that future taxable profits will be available. Assumptions about the generation of future taxable profits depend on management’s estimates of future cash flows. These depend on estimates of future sales, operating costs, capital expenditure, dividends and other capital management transactions. Judgements are also required about the application of income tax legislation. Changes in expectations for the future performance of the business may impact the amount of deferred tax assets recoverable and recognised on the statement of financial position and the amount of other tax losses and temporary differences not yet recognised. At 30 June 2026, the Group had $47,082,387 (2025: $47,222,892) of unrecognised tax losses. B6. Other income 2026 $ 2025 $ Proceeds from insurance claim – 1,259,338 Proceeds from legal settlement 825,000 – Other income 117,271 701,204 Total 942,271 1,960,542 In November 2025, the Group reached a settlement litigation with former customers, Alice Trading Ltd and Willis Trading Ltd. The outcome of the legal action resulted in a settlement receipt of $825,000. The proceeds were received by the Group in December 2025. In December 2024 the Group reached a settlement agreement with its insurers for losses relating to quality issues identified on some raw materials with proceeds being received in January 2025. 32
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C. Operating Assets and Liabilities This section provides details of the Group’s operating assets, and liabilities incurred as a result of trading activities, used to generate the Group’s performance. C1. Trade and other receivables 30/06/2026 $ 30/06/2025 $ Trade debtors 11,338,424 13,390,267 Allowance for credit losses (294,868) (3,004,187) Other receivables 1,531,431 221,660 Total 12,574,987 10,607,740 The following table details trade receivables at risk based on the Group’s provision matrix. 30/06/2026 Not past due <30 days 31–60 days 61–90 days 91–120 days >120 days Total Gross carrying amount 10,538,120 415,521 32,725 210,093 – 141,965 11,338,424 Loss allowance (243,996) (12,493) (11,007) (3,597) – (23,775) (294,868) Trade debtors less allowance for credit losses 11,043,556 30/06/2025 Not past due <30 days 31–60 days 61–90 days 91–120 days >120 days Total Gross carrying amount 9,892,260 567,490 140,541 60,102 28,432 2,701,442 13,390,267 Loss allowance (301,569) (10,345) (2,392) (2,077) (1,194) (2,686,610) (3,004,187) Trade debtors less allowance for credit losses 10,386,080 The Group’s exposure to credit risks related to trade and other receivables are disclosed in Note D2 Financial risk management. Recognition and measurement The Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables are measured at the transaction price determined under AASB 15 Revenue from Contracts with Customers. Further details are disclosed in Note B2 Revenue. Financial instruments are subsequently measured at fair value through profit or loss (FVPL), amortized cost, or fair value through other comprehensive income (FVOCI). The classification is based on two criteria: the Group’s business model for managing the assets; and whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on the principal amount outstanding (the ‘SPPI criterion’). The Group’s trade and other receivables and financial assets are measured at amortized cost that are held within a business model with the objective of holding the financial assets to collect contractual cash flows that meet the SPPI criterion. The Group adopted a forward-looking expected credit loss (ECL) approach for impairment losses for ECLs for financial assets not held at FVPL. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive. The shortfall is then discounted at an approximation to the asset’s original effective interest rate. Key estimate and judgement For trade receivables, the Group has applied the standard simplified approach and has calculated ECLs based on lifetime expected credit losses. The Group has established a provision matrix that is based on the Group’s historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The Group considers a financial asset in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before considering any credit enhancements held by the Group. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 33
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Notes to the Financial Statements continued C2. Inventories 30/06/2026 $ 30/06/2025 $ Raw materials 17,043,368 6,903,284 Finished goods 19,223,605 13,157,187 Total 36,266,972 20,060,471 The amount of inventory that was written off during the year was $1,274,175 (2025: $nil). Having regard to the inventories on hand at 30 June 2026, the expiry dates of the inventory and sales forecasts, management has recognised an inventory obsolescence provision of $2,799,896 (2025: $2,555,585). The cost of inventories recognised as an expense during the year was $67,371,451 (2025: $53,487,740). Recognition and measurement Inventories are valued at the lower of cost and net realisable value. Cost is calculated using the standard costing method. Net realisable value represents the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. Key estimates and judgements Recovery of inventory Estimation of net realisable value includes assessment of expected future turnover of inventory held for sale and the expected future selling price of such inventory. Management assessed the recoverability of inventories based on changes in trading and economic conditions, and changes in country specific regulations that may impact these estimations in future periods. This expected turnover method is also used to determine the realizable use of ingredients, including powder. C3. Other assets 30/06/2026 $ 30/06/2025 $ Current Prepayments and other assets 708,237 959,472 Deposits paid 1,024,375 1,490,220 Prepayment for purchase of raw materials 274,050 348,167 Derivative financial assets 195,364 – Total Current 2,202,026 2,797 ,859 Non-current Security bond 567,739 567,738 Total Non-current 567 ,739 567 ,738 Recognition and measurement Prepayment for purchase of raw materials Prepayment for purchase of raw materials represent payments for purchases of raw materials prior to ownership passing to the Group. Deposits paid Deposits paid represent payments to suppliers in relation to goods not received or services not rendered. These deposits are refundable to the Group. 34
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Security bond Security bond represents payments to the landlord securing the obligations of the Group under the lease contract of the Deloraine Dairy site. C4. Plant and equipment Recognition and measurement Building and improvements $ Production equipment $ Office equipment $ Total $ Cost As at 30 June 2024 1,735,233 4,060,467 522,732 6,318,432 Additions 5,968 62,163 14,366 82,497 Disposals – – – – As at 30 June 2025 1,741,201 4,122,630 537,098 6,400,929 Additions 35 211,990 294,236 506,261 Disposals – – – – As at 30 June 2026 1,741,236 4,334,620 831,334 6,907 ,190 Accumulated depreciation and impairment As at 30 June 2024 (560,030) (1,442,033) (278,001) (2,280,064) Depreciation (93,222) (245,490) (51,184) (389,896) Disposals – – – – As at 30 June 2025 (653,252) (1,687 ,523) (329,185) (2,669,960) Depreciation (100,285) (265,976) (78,194) (444,455) Disposals – – – – As at 30 June 2026 (753,537) (1,953,499) (407 ,379) (3,114,415) Net book value As at 30 June 2025 1,087,949 2,435,107 207,913 3,730,969 As at 30 June 2026 987,699 2,381,121 423,955 3,792,775 Plant and equipment are stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated on a straight-line basis to write off the net cost of each item of plant and equipment over their expected useful lives as follows: Building and improvements 15-20 years Production equipment 12-19 years Office equipment 4 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. An item of plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 35
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Notes to the Financial Statements continued C5. Intangible assets Goodwill Brand Name Patents, Trademarks and Software Other Intangibles Total Cost As at 30 June 2024 90,614,673 4,691,634 130,965 47,096,599 142,533,871 Additions – – 35,096 – 35,096 Disposals – – – – – As at 30 June 2025 90,614,673 4,691,634 166,061 47,096,599 142,568,967 Additions – 700,000 7,400 – 707,400 Disposals – – – – – As at 30 June 2026 90,614,673 5,391,634 173,461 47,096,599 143,276,367 Accumulated depreciation and impairment As at 30 June 2024 (90,040,602) (4,100,000) (95,226) (47,096,599) (141,332,427) Amortisation – – (19,445) – (19,445) Disposals – – – – – As at 30 June 2025 (90,040,602) (4,100,000) (114,671) (47,096,599) (141,351,872) Amortisation – – (9,199) – (9,199) Disposals – – – – – As at 30 June 2026 (90,040,602) (4,100,000) (123,870) (47,096,599) (141,361,071) Net book value As at 30 June 2025 574,071 591,634 51,390 – 1,217,095 As at 30 June 2026 574,071 1,291,634 49,591 – 1,915,296 Goodwill Goodwill is recognised on business acquisitions, representing the excess of the fair value of the consideration transferred over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the business recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. For the purposes of impairment testing, goodwill acquired in a business combination is, from the date of acquisition, allocated to the Group’s cash-generating units that are expected to benefit from the synergies of the combination. Brand names On 3 December 2025, the Group paid $700,000 to acquire the registered brand name Caprilac and all associated intellectual property rights. Brand names in Infant Food Co and Nulac Foods CGUs have an indefinite life and are not amortised. As at 30 June 2026, these assets were tested for impairment. Other Intangibles Included in Other Intangibles are: • CNCA (Certification and Accreditation Administration of the People’s Republic of China) license held by Deloraine Dairy. The license was fully impaired in FY23. • Customer contract/lists acquired in a business combination that were fully impaired in FY23. 36
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Impairment testing for Cash Generating Units (CGUs) including goodwill Goodwill, brand names and intangible asset allocation For the purposes of impairment testing, goodwill, brand names and other intangible assets with an indefinite useful life are allocated to the Group’s CGUs which represent the lowest level within the Group at which goodwill and brand names are monitored by internal management and are no higher than an operating segment. Goodwill, brand names and intangible assets with an indefinite useful life are allocated to the Group’s CGUs as follows: 2026 $ 2025 $ Infant Food Co 1,865,705 1,165,705 Recognition and measurement Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. An asset’s recoverable amount is the higher of an assets or CGU’s fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Nulac and DLD CGUs do not carry any goodwill or indefinite life intangible assets as at 30 June 2026 (FY25: $Nil). For the Infant Food Co CGU, the recoverable amount has been calculated based on the value in use, using a discounted cash flow (DCF) approach. The DCF uses post-tax cash flow projections that are based on the most recent budget/forecast and growth through the forecast period of 5 years. Discount rates has been updated to reflect the current market conditions. The impairment assessment concluded that the recoverable amount exceeds the carrying amount for The Infant Food Co CGU at 30 June 2026. As a result, no impairment of goodwill and intangible assets has been recognised for this CGU. C6. Trade and other payables 30/06/2026 $ 30/06/2025 $ Trade payables 13,122,095 7,434,137 Other payables 647,088 2,329,564 Customer deposits 1,476,172 242,028 Supplier financing 291,270 288,034 Total 15,536,625 10,293,763 Recognition and measurement Trade and other payables Trade and other payables are initially recognised at fair value and subsequently carried at amortized cost due to their short-term nature, and they are not discounted. They represent liabilities recognised when the Group becomes obligated to make future payments resulting from the purchase of goods and services. The amounts are unsecured. The carrying value of trade and other payables approximates their fair value. Customer Deposits Customer deposits are cash considerations received from customers, for which the Group has not yet provided goods or services in exchange. Supplier Financing On 30 November 2025, the Group entered into a supplier financing arrangement to fund the Group’s general insurance premiums. Under the arrangement, the financier agreed to pay the insurer $1.46 million upfront on behalf of the Group and receive settlement from the Group over 10 monthly instalments to be repaid in full by 31 August 2026. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 37
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Notes to the Financial Statements continued C7 . Leases Right of use assets Buildings $ Equipment $ Total Cost As at 30 June 2024 3,791,601 115,385 3,906,986 Additions – – – As at 30 June 2025 3,791,601 115,385 3,906,986 Additions 3,498,928 – 3,498,928 Reassessment 2,816,153 – 2,816,153 Disposal (1,269,736) – (1,269,736) As at 30 June 2026 8,836,946 115,385 8,952,331 Accumulated depreciation and impairment As at 30 June 2024 (2,470,949) (100,637) (2,571,586) Depreciation (557,755) (14,748) (572,503) As at 30 June 2025 (3,028,704) (115,385) (3,144,089) Depreciation (1,110,946) – (1,110,946) Disposal 808,246 – 808,246 As at 30 June 2026 (3,331,404) (115,385) (3,446,789) Net book value As at 30 June 2025 762,897 – 762,897 As at 30 June 2026 5,505,542 – 5,505,542 The Group leases several assets including buildings and IT equipment. The lease terms range from 2–5 years (2025: 2–5 years). Extension options are included in a number of leases across the Group. These are used to maximize operational flexibility in terms of managing the assets used in the Group’s operations. The majority of extension options held are exercisable only by the Group and not by the respective lessor. During the year, the Group renewed its lease arrangements for the facilities in Dandenong South including a significant increase of leased area in one of the facilities. The prior leases were due to expire in April 2026 and have been renewed to 2031. Amounts recognised in profit and loss 30/06/2026 $ 30/06/2025 $ Depreciation expense on right-of-use assets 1,110,946 572,503 Interest expense on lease liabilities 398,237 60,700 Expense relating to short-term leases 487,589 467,310 The total cash outflow for leases amount to $1,699,995 (2025: $746,257). 38
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Lease liabilities 30/06/2026 $ 30/06/2025 $ Current 983,893 670,709 Non-current 4,939,701 296,791 5,923,594 967 ,500 Maturity analysis Year 1 1,354,036 697,509 Year 2 1,391,216 298,515 Year 3 1,445,157 1,496 Year 4 1,502,458 – Year 5 and onwards 1,297,512 – 6,990,379 997,520 Less Interest 1,066,785 30,020 Total 5,923,594 967 ,500 The Group does not face a significant liquidity risk with regard to its lease liabilities. All lease obligations are denominated in Australian dollars. Recognition and measurement Applying AASB 16 Leases, for all leases, the Group: • Recognises right-of-use assets and lease liabilities in the consolidated statement of financial position, initially measured at the present value of the future lease payments, with the right-of-use asset adjusted by the amount of any prepaid or accrued lease payments. • Recognises depreciation of right-of-use assets and interest on lease liabilities in the consolidated statement of profit or loss. • Separates the total amount of cash paid into a principal portion (presented within financing activities) and interest (presented within financing activities) in the consolidated statement of cash flows. • Lease incentives (e.g. rent free period) are recognised as part of the measurement of the right-of-use assets and lease liabilities. Under AASB 16, right-of-use assets are tested for impairment in accordance with AASB 136 Impairment of Assets. For short-term leases (lease term of 12 months or less) and leases of low-value assets (which includes tablets and personal computers, small items of office furniture and telephones), the Group has opted to recognise a lease expense on a straight-line basis as permitted by AASB 16. This expense is presented within ‘Administrative and other costs’ in the Consolidated Statement of Profit or Loss and Other Comprehensive Income. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 39
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Notes to the Financial Statements continued C8. Borrowings 30/06/2026 $ 30/06/2025 $ National Australia Bank facility limit 20,000,000 10,000,000 Amount Drawn 10,000,000 – Undrawn facility amount 10,000,000 10,000,000 The Group has a bank facility is with National Australia Bank. During FY26, the facility has been renewed until 31 August 2027, refer to going concern disclosures in Note A. Recognition and measurement Borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortized cost using the effective interest method. The carrying value of borrowings approximates their fair value due to relatively short-term maturity. C9. Provisions 30/06/2026 $ 30/06/2025 $ Current Annual leave and long service leave 1,000,223 800,848 Other provisions 171,746 2,164,114 1,171,969 2,964,962 Non-Current Long service leave 447,299 344,630 Make good provision 130,660 123,670 577 ,959 468,300 Recognition and measurement Annual leave and long service leave Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave when it is probable that settlement will be required, and they are capable of being measured reliably. Provisions made in respect of employee benefits expected to be settled within 12 months are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the Group in respect of services provided by employees up to the reporting date. Other provisions Provisions made for financial obligations including legal costs. 40
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D. Capital and Financial Risk Management This section outlines how the Group manages its capital structure and its exposure to financial risk and provides details of its balance sheet liquidity and access to financing facilities. D1. Capital management The Group’s objectives when managing capital is to safeguard its ability to continue as a going concern so that in due course it can provide returns for stakeholders and maintain an optimum capital structure. In order to maintain or adjust the capital structure, the Group manages the level of debt such that it remains prudent and facilitates the execution of the operational plan and provides flexibility for growth. D2. Financial risk management Exposure to credit risk, foreign currency risk and liquidity risk arises in the normal course of the Group’s business. The Group’s financial risk management processes and procedures seek to minimize the potential adverse impacts that may arise from the unpredictability of financial markets. Policies and procedures are reviewed periodically to reflect both changes in market conditions and changes in the nature and volume of Group activities. Credit risk management Credit risk is the risk of financial loss to the Group if a customer or the counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s receivables from customers. 30/06/2026 $ 30/06/2025 $ Cash and cash equivalent (counterparty risk) 9,412,498 17,426,313 Trade receivables (customer credit risk) 11,043,556 10,386,079 Other receivables 1,531,431 221,660 Prepayment for purchase of raw materials 274,050 348,167 Deposits paid 1,592,114 2,057,959 23,853,649 30,440,178 Counterparty risk At balance date, the Group’s bank accounts were held with National Australia Bank Limited and Bank of Montreal. The Group does not have any other concentrations of counterparty credit risk. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 41
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Notes to the Financial Statements continued Customer credit risk The Group’s exposure to customer credit risk is influenced mainly by the individual characteristics of each customer. The majority of sales are to major retailers with established creditworthiness and minimum levels of default. New customers are analysed individually for creditworthiness, taking into account credit ratings where available, financial position, previous trading experience and other factors. In monitoring customer credit risk, customers are assessed individually by their debtor ageing profile. Monitoring of receivable balances on an ongoing basis minimizes the exposure to bad debts. For trade receivables, the Group has applied the standard’s simplified approach and has calculated ECLs based on lifetime expected credit losses. The Group considers a financial asset in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before considering any credit enhancements held by the Group. Ageing of trade receivables at the reporting date: 30/06/2026 $ 30/06/2025 $ Neither past due nor default 10,294,123 9,590,691 Past due but not impaired Past due up to 30 days 403,028 557,145 Past due 31 to 60 days 21,718 138,149 Past due 61 to 90 days 206,496 58,025 Past due more than 90 days 118,191 42,070 11,043,556 10,386,080 Movement in allowance for doubtful debts. 30/06/2026 $ 30/06/2025 $ Allowance of doubtful debts Balance at beginning of the year 3,004,187 7,051,338 Amounts (recovered)/charged to the statement of profit or loss and other comprehensive income (28,680) (3,073,664) Provision provided/(utilised) (2,680,639) (973,487) 294,868 3,004,187 Foreign currency risk management The Group enters into the transactions in Australia, New Zealand, China, USA and Europe and is exposed to currency risk arising from movements in the currencies of those countries against the AUD dollar. Expressed in AUD dollars, the table below indicates material exposure and sensitivity to movements in exchange rates on the profit or loss of the Group based on closing exchange rates as at 30 June, applied to the Group’s financial assets/(liabilities) at 30 June. To manage foreign currency risk, the Group enters into forward foreign exchange contracts. The Group has elected not to apply hedge accounting under AASB 9 and, accordingly, these derivative financial instruments are recognised initially at fair value and subsequently remeasured to fair value at each reporting date. Gains and losses arising from changes in the fair value of derivative financial instruments are recognised immediately in profit or loss At 30 June 2026, the Group recognised a net derivative financial asset of $195,364 (2025: nil) in respect of outstanding foreign exchange contracts. Exchange rates and assets and liabilities held in foreign currencies will fluctuate over the course of normal operations. The analysis is performed consistently from year to year. 42
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Net exposure on reporting date (Payable)/Receivable Impact on pre-tax profit/(loss) 2026 $ +10% $ -10% $ Movement on exchange rate NZ Dollar 6,864 (624) 763 USD Dollar 9,959,668 (905,424) 1,106,630 RMB Dollar 31,359 (2,851) 3,484 Euro Dollar 3,919 (356) 435 Net Exposure 10,001,810 (909,255) 1,111,312 Net exposure on reporting date (Payable)/Receivable Impact on pre-tax profit/(loss) 2025 $ +10% $ -10% $ Movement on exchange rate NZ Dollar 119,305 (10,846) 13,256 USD Dollar 5,255,720 (477,793) 583,969 RMB Dollar (63,206) 5,746 (7,023) Euro Dollar (18,964) 1,724 (2,107) Net Exposure 5,292,855 (481,169) 588,095 Interest risk management The Group’s primary exposure to interest rate risk arises from borrowings under its $20.0 million facility, which expose the Group to variability in future cash flows from changes in the Australia Trade Refinance Indicator rate (Interest Rates). At 30 June 2026, the Group had drawn down $10.0 million under its facility. A change in interest rates would impact the Group’s finance costs and operating cash flows. A 1% increase in interest rates on the drawn down amount ($10.0 million) would increase the Groups finance costs by $100,000 Liquidity risk management Liquidity risk is the risk that the Group will be unable to meet its obligations as they fall due. This risk is managed by establishing a target minimum liquidity level, ensuring that ongoing commitments are managed with respect to forecast available cash inflows. The Group has a $20.0 million facility limit, $10.0 million drawn at 30 June 2026 (30 June 2025: $nil drawn). During FY26, the facility has been renewed until 31 August 2027, refer to going concern disclosures in Note A. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 43
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Notes to the Financial Statements continued Contractual undiscounted maturities of financial liabilities: Contractual cash flows 2026 Carrying amount Total 2 months or less 2-12 months 1-2 years 3-5 years More than 5 years Non-derivative financial liabilities Lease liability 5,923,594 6,990,377 225,672 1,128,363 1,391,216 4,245,126 – Trade and other payables 14,626,655 14,626,655 14,626,655 – – – – Borrowings 10,000,000 11,263,185 180,455 902,275 10,180,455 – Supplier financing 291,270 291,270 291,270 – – – – Net Exposure 30,841,519 33,171,487 15,324,052 2,030,638 11,571,671 4,245,126 – Contractual cash flows 2025 Carrying amount Total 2 months or less 2-12 months 1-2 years 3-5 years More than 5 years Non-derivative financial liabilities Lease liability 950,990 997,520 116,251 581,258 298,515 1,496 – Trade and other payables 10,005,729 10,005,729 10,005,729 – – – – Supplier financing 288,034 288,034 288,034 – – – – Net Exposure 11,244,753 11,291,284 10,410,014 581,258 298,515 1,496 – D3. Cash and cash equivalents 30/06/2026 $ 30/06/2025 $ Cash at bank 9,412,498 17,426,313 9,412,498 17 ,426,313 Interest is earned at floating rates based on daily bank deposit rates. Recognition and measurement Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less that are readily convertible to known amounts of cash, and which are subject to an insignificant risk of changes in value. The carrying value of cash and cash equivalents approximates their fair value. 44
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D4. Cash flow information Reconciliation of after-tax profit with net cash flows from operating activities. 30/06/2026 $ 30/06/2025 $ Profit/(Loss) after income tax expense for the year (4,624,673) 5,543,841 Income tax benefit/(expense) – – Share-based payments 271,870 434,945 Depreciation and amortisation 1,568,241 982,364 Foreign exchange translation 864,848 (293,081) Decrease/(increase) in trade and other receivables (1,967,247) (1,284,500) Decrease/(increase) in inventories (16,206,501) 8,165,475 Decrease/(increase) in other assets 595,833 1,740,879 Increase/(decrease) in trade and other payables 5,242,862 (7,429,141) Increase/(decrease) in Right of use assets and Lease Liabilities 799,858 – Increase/(decrease) in provisions (1,683,334) (1,728,862) Net cash outflow from/(used in) operating activities (15,138,244) 6,131,920 D5. Share capital 30/06/2026 30/06/2025 Shares $ Shares $ Movement in share capital Balance at the beginning of the year 893,130,038 356,757,916 892,130,038 356,757,916 Share issue to employees 1,000,000 – 1,000,000 – Balance at the end of the year 894,130,038 356,757 ,916 893,130,038 356,757 ,916 Fully paid ordinary shares carry one vote per share and carry the right to dividends. Fully paid ordinary shares have no par value. D6. Share based payments reserve 30/06/2026 $ 30/06/2025 $ Balance at the beginning of the year 12,690,977 12,256,032 Share based payment expense 271,870 434,945 Balance at the end of the year 12,962,847 12,690,977 Share based payments reserve The equity settled payments reserve is used to record the value of share-based payments. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 45
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Notes to the Financial Statements continued D7 . Contingent liabilities From time to time entities within the Group are party to various legal actions as well as enquiries from regulators and government bodies that have arisen in the normal course of business. The outcome of the currently pending and potential future legal actions, of a legal nature cannot be predicted with certainty. Such matters can raise complex legal issues and are subject to many uncertainties including but not limited to the facts and circumstances of each matter. The Group has given consideration to such matters which are or may be subject to claims, penalties and litigation as of the reporting date and are of the opinion that any litigation arising from such action would not have a material effect on the Group’s financial performance. E. Associates As at 30 June 2026 the Company has the following associate entities: Country of incorporation Principal Activity Class of Shares % Owned 2026 % Owned 2025 Capela Dairy Nutrition Co. Pty Ltd Australia Non-trading Ordinary 20% 20% Bubs Supreme Partner Pty Ltd Australia Non-trading Ordinary 100% 51% The above associates are carried at $Nil carrying amount as at 30 June 2026 (2025: $Nil). Bubs Supreme Partner Pty Ltd became 100% owned by Bubs Australia Limited on 13 October 2025. 46
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F . Group structure F1. Parent entity Bubs Australia Limited is the ultimate parent of the Group. F2. Subsidiaries Country of incorporation Principal Activity Class of Shares % Owned 2026 % Owned 2025 The Infant Food Holding Co. Pty Limited Australia Non-trading Ordinary 100% 100% The Infant Food Co. Pty Limited Australia Trading Company Ordinary 100% 100% Bubs IP Pty Ltd (formerly Bubs Australia Pty Limited) Australia Holder of IP and Trademarks Ordinary 100% 100% Nulac Foods Pty Ltd Australia Trading Company Ordinary 100% 100% Bubs New Zealand Pty Limited New Zealand Trading Company Ordinary 100% 100% Australia Deloraine Dairy Pty Ltd Australia Trading Company Ordinary 100% 100% Aussie Bubs Inc USA Trading Company Ordinary 100% 100% Bubs (Shanghai) Trading Co. Ltd China Non-trading Ordinary 100% 100% Bubs Supreme Partner Pty Ltd Australia Non-trading Ordinary 100% 51% Bubs Supreme Partner Pty Ltd was not a subsidiary in FY25 becoming 100% owned by Bubs Australia Limited on 13 October 2025. F3. Parent entity information Set out below is the supplementary information of the legal parent entity. 2026 $ 2025 $ Result of parent entity Profit/(Loss) for the year (2,380,335) (2,289,096) Other comprehensive income – – Total comprehensive loss for the year (2,380,335) (2,289,096) Financial position of parent entity at year end Current assets 280,967 1,569,866 Total assets 105,560,703 108,261,057 Current liabilities (443,896) (1,227,806) Total liabilities (9,902,778) (10,494,666) Net assets 95,657 ,925 97,766,391 Issued share capital 384,756,709 384,756,709 Reserves 12,962,847 12,690,977 Accumulated losses (302,061,630) (299,681,295) Total Equity 95,657 ,925 97,766,391 BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 47
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Notes to the Financial Statements continued G. Other disclosures G1. Related party transactions Key management personnel Key management personnel are defined as those persons having significant authority and responsibility for planning, directing and controlling the activities of the Group. Key management personnel compensation: Key management personnel disclosures 30/06/2026 $ 30/06/2025 $ Short-term employee benefits 2,342,821 2,877,592 Post-employment benefits 109,513 112,562 Long-term benefits 29,433 20,423 Share-based payments 90,091 382,955 Key management personnel disclosures 2,571,858 3,393,532 G2. Share based payments Options No share based payments expense was recognised in relation to options exercisable for the year ended 30 June 2026 (2025: $Nil) Share rights Share based payments expense in relation to the share rights granted in FY26 is as follows: 30/06/2026 $ 30/06/2025 $ Share rights issued to MD & CEO 184,800 – Share rights issued to (forfeited by) former MD & CEO1 (297,539) 343,618 Share rights issued to KMP 202,830 39,337 Share rights issued to employees 181,779 51,990 271,870 434,945 1. The reversal of Share based payments due to Mr Reg Weine departing the company in July 2025. The following LTI sign-on retention rights and performance rights were forfeited: • 1,000,000 sign-on retention rights issued in FY24 • 4,786,885 LTI performance rights issued in FY24 (2,393,443 remaining on foot) • 11,185,289 LTI performance rights issues in FY25. 48
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Share rights issued During FY26, Bubs the following Employee Share Rights were issued: i. Sign-on retention rights (SOR Rights) SOR Rights have “time-based” vesting conditions where period held determines the number of shares that will vest. The following SOR rights were issued to Joe Coote (MD & CEO) • 1,000,000 share rights vest on 31 July 2026 – These rights are scheduled to vest upon completion of the service period on 31 July 2026. • 1,250,000 share rights vest on 31 July 2027 – These rights are scheduled to vest upon completion of the service period on 31 July 2027. • 1,500,000 share rights vest on 31 July 2028 – These rights are scheduled to vest upon completion of the service period on 31 July 2028. The SOR Rights were approved by shareholders and granted on 20 November 2025 and valued at $0.076 per share. ii. Long Term Performance rights (LTI performance rights) During FY26 Bubs issued the following share rights which are subject to an indexed total shareholder return (TSR) vesting condition: • 3,291,123 share rights issued to Joe Coote (CEO) scheduled to vest on 30 June 2028. This was subject to Shareholder approval on 20 November 2025 and valued at $0.076. • 1,763,853 share rights were issued to Richard Paine (COO) vesting on 30 June 2028. This was subject to the Nomination and Remuneration Committee and Director approval on 23 December 2025 and valued at $0.076. • 1,645,562 share rights were issued to Naomi Verloop (CFO) vesting on 30 June 2028. This was subject to the Nomination and Remuneration Committee and Director approval on 23 December 2025 and valued at $0.076. The vesting of the rights will be determined by comparing the Company’s TSR against the TSR of the S&P/ASX Small Ordinaries Index from 1 July 2025 to 30 June 2028 (the Measurement Period). The number of rights that will vest is dependent on the following vesting schedule: Performance Level Bubs TSR relative to S&P/ASX Small Ordinaries Index % of Rights which vest Stretch ≥ index TSR + 10% TSR CAGR 100% Between target and stretch > index TSR & < index TSR + 10% TSR CAGR Pro-rata Target and threshold ≥ index TSR 50% Below threshold < index TSR 0% At 30 June 2026, 21,908,714 share rights were outstanding (FY25: 30,695,285). Recognition and measurement The fair value of options granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees become unconditionally entitled to the options. The fair value of the options granted is measured using the Black-Scholes pricing model, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted over the period to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met but is not adjusted when market performance conditions are not met. Expected volatility has been based on an evaluation of the historical volatility of the Group’s share price, particularly over the historical period commensurate with the expected term. The expected term of the instruments has been based on historical experience and general option holder behaviour. The fair value of share rights granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at share price on the grant date. The amount recognised as an expense is adjusted over the period to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met but is not adjusted when market performance conditions are not met. Key estimate and judgement Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 49
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Notes to the Financial Statements continued G3. Auditor’s remuneration During the financial year the following fees were paid or payable for services provided by the auditor of the Group: 2026 $ 2025 $ Audit services Audit and review of the financial statements 506,757 623,716 506,757 623,716 G4. Subsequent events On 10 July 2026, the Group appointed Chris Rowe as the new Chief Financial Officer, taking over from Naomi Verloop who is no longer a KMP from this date. There have been no subsequent events since 30 June 2026 that have significantly affected or could significantly affect the reported results from operations or the Company’s financial position for the year then ended. G5. Accounting policies and new accounting standards Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Bubs Australia Limited (‘company’ or ‘parent entity’) as at 30 June 2026 and the results of all subsidiaries for the year then ended. Bubs Australia Limited and its subsidiaries together are referred to in these financial statements as the ‘Group’ . Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Intercompany transactions, balances, and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. The accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent. Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. 50
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In the opinion of the directors of Bubs Australia Limited (the ‘Company’): The consolidated financial statements and notes that are set out on pages 21 to 50 and the Remuneration report on pages 11 to 18 in the Directors’ report, are in accordance with the Corporations Act 2001, including: • Giving a true and fair view of the Group’s financial position as at 30 June 2026 and of its performance for the financial year ended on that date; and • Complying with Australian Accounting Standards and the Corporations Regulations 2001; and • There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. • The Consolidated entity disclosure statement as at 30 June 2026 set out on page 52 is true and correct. The directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the CEO, COO and CFO for the financial year ended 30 June 2026. The directors draw attention to Note A to the consolidated financial statements, which includes a statement of compliance with International Financial Reporting Standards. Signed in accordance with a resolution of the directors: Paul Jensen Independent Chair and Non-Executive Director Melbourne 27 August 2026 Directors’ Declaration For the year ended 30 June 2026 BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 51
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Set out below is relevant information relating to entities that are consolidated in the consolidated financial statements at the end of the financial year as required by the Corporation Acts 2001 (S. 295 (3A)(a)): Body Corporate, partnership, or Trust Place incorporated % held directly or indirectly by the Company in the Body Corporate Australia or foreign tax resident Jurisdiction for foreign residents Parent entity: Bubs Australia Limited Body Corporate Australia – Australian N/A Subsidiaries: The Infant Food Holding Co. Pty Limited Body Corporate Australia 100% Australian N/A The Infant Food Co. Pty Limited Body Corporate Australia 100% Australian N/A Australia Deloraine Dairy Pty Ltd Body Corporate Australia 100% Australian N/A Bubs IP Pty Ltd (formerly Bubs Australia Pty Limited) Body Corporate Australia 100% Australian N/A Nulac Foods Pty Ltd Body Corporate Australia 100% Australian N/A Bubs Supreme Partner Pty Ltd Body Corporate Australia 100% Australian N/A Bubs New Zealand Pty Limited Body Corporate New Zealand 100% Foreign New Zealand Aussie Bubs Inc Body Corporate USA 100% Foreign USA Bubs (Shanghai) Trading Co. Ltd Body Corporate China 100% Foreign China Basis of preparation Determination of Tax Residency Section 295 (3A) of the Corporation Acts 2001 requires that the tax residency of each entity which is included in the Consolidated Entity Disclosure Statement (CEDS) be disclosed. For the purposes of this section, an entity is an Australian resident at the end of a financial year if the entity is: a. an Australian resident (within the meaning of the Income Tax Assessment Act 1997) at that time; or b. a partnership, with at least one partner being an Australian resident (within the meaning of the Income Tax Assessment Act 1997) at that time; or c. a resident trust estate (within the meaning of Division 6 of Part III of the Income Tax Assessment Act 1936) in relation to the year of income (within the meaning of that Act) that corresponds to the financial year. The determination of tax residency involves judgment as the determination of tax residency is highly fact dependent and there are currently several different interpretations that could be adopted, and which could give rise to a different conclusion on residency. In determining tax residency, the consolidated entity has applied the following interpretations: • Australian tax residency The consolidated entity has applied current legislation and judicial precedent, including having regard to the Commissioner of Taxation’s public guidance in Tax Ruling TR 2018/5. • Foreign tax residency The consolidated entity has applied current legislation and where available judicial precedent in the determination of foreign tax residency. Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions to assist in its determination of tax residency to ensure applicable foreign tax legislation has been complied with. Paul Jensen Independent Chair and Non-Executive Director Melbourne 27 August 2026 Consolidated Entity Disclosure Statement For the year ended 30 June 2026 52
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KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the shareholders of Bubs Australia Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of Bubs Australia Limited (the Company). In our opinion, the accompanying Financial Report of the Company gives a true and fair view, including of the Group ’s financial position as at 30 June 2026 and of its financial performance for the year then ended, in accor dance with the Corporations Act 2001, in compliance with Australian Accounting Standards and the Corporations Regulations 2001. The Financial Report comprises: • Consolidated Statement of Financial Position as at 30 June 2026 • Consolidated Statement of Profit or L oss and O ther Comprehensive Income, Consolidated Statement of Changes in E quity, and Consolidated Statement of Cash Flows for the year then ended • Consolidated Entity Disclosure Statement a nd accompanying basis of preparation as at 30 June 2026 • Notes, including material accounting policies • Directors’ Declaration. The Group consists of the Company and the entities it controlled at the year end or from time to time during the financial year. Basis for opinion We conducted our a udit in accordance wit h Australian Auditing Standards . We believe that t he audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code) that are relevant to audits of the financial report of public interest entities in Australia. We have fulfilled our other ethical responsibilities in accordance with these requirements. Independent Auditor’s Report BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 53
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Independent Auditor’s Report continued Material uncertainty related to going concern We draw attention to Note A. Basis of preparation, “Going Concern basis of accounting” in the financial report. The conditions disclosed in Note A. Basis of preparation, indicate a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern and, therefore, whether it will realise its assets and discharge its liabilities in the normal course of business, and at the amounts stated in the financial report. Our opinion is not modified in respect of this matter. In concluding there is a material uncertainty related to going concern we evaluated the extent of uncertainty regarding events or conditions casting significant doubt in the Group’s assessment of going concern. This included: • Analysing the cash flow projections by: Evaluating the underlying data used to generate the projections for consistency with other information tested by us, our understanding of the Group’s intentions, and past results and practices; Assessing the planned levels of operating cash inflows and outflows for feasibility, timing and consistency of relationships to the Group’s historical results, particularly in light of historic loss making operations, results since year end, assumptions around attainment of the permanent U.S. Food and Drug Administration approval, and our understanding of the business, industry and economic conditions of the Group; • Assessing significant forecast cash inflows and outflows including the impact of key markets for feasibility, quantum and timing. We used our knowledge of the client, its industry and current status of those initiatives to assess the level of associated uncertainty; • Reading correspondence with existing financiers to understand the terms of current financing arrangements and assessing the level of associated uncertainty; and • Evaluating the Group’s going concern disclosures in the financial report by comparing them to our understanding of the matter, the events or conditions incorporated into the cash flow projection assessment, the Group’s plans to address those events or conditions, and accounting standard requirements. We specifically focused on the principal matters giving rise to the material uncertainty. Key Audit Matters Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matter described below to be the Key Audit Matter. 54
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Valuation of inventory ($36.3m) Refer to Note C2 to the Financial Report The key audit matter How the matter was addressed in our audit Valuation of inventory is a key audit matter due to the: • size of the inventory balance relative to t he Group’s financial position (50% of total assets); and • extent of judgement involved by the Group in determining the net recoverable value. Such judgements may have a significant impact on the Group’s provision and therefore the overall carrying value of inventories, necessitating additional audit effort. The most significant areas of judgement we focused on was in assessing the Group’s: • expected selling price of inventory; and • future usage of inventory. We involved our senior audit team members in assessing this key audit matter. Our procedures included: • assessing the appropriateness of inventory valuation accounting policies applied by the Group against the requirements of accounting standards and our understanding of t he business; • obtaining an understanding of the Group’s processes relating to inventory provisioning and valuation; • attending a sample of year end inventory counts across the Group including inventory held at third-party locations. We observed the Group’s process which included identifying slow moving and potentially obsolete inventory, and performed sample counts ourselves comparing count results to the Group’s testing the existence and condition of inventory; • assessing the integrity of the inventory valuation models used, including the mathematical accuracy of the underlying calculations; • comparing a sample of individual inventory carrying values against current selling prices (as a proxy for expected selling price of inventory and net realisable value) to identify individual products at risk of being recorded in excess of their net realisable value; • challenging the Group's judgements relating t o inventory sales forecast in the provision for slow moving inventor y. For inventory items identified as slow moving or aged we compared the inventory items to the Group’s inventory provision; • assessing the disclosures in the Group’s financial report against the requirements of accounting standards. BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 55
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Independent Auditor’s Report continued Other Information Other Information is financial and non-financial information in Bubs Australia Limited ’s annual report which is provided in addition to the Financial Report and the Auditor's Report. T he Directors are responsible for the Other Information. The Other Information we obtained prior to the date of this Auditor’s Report was the Review of Operations and Financial Results and the Director’s Report. The Bubs’ Strategic Pillars, Year at a Glance, From the Chair and CEO and Risk Statement are expected to be made available to us after the date of the Auditor’s Report. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not and will not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report. Responsibilities of the Directors for the Financial Report The Directors are responsible for: • preparing the Financial Report in accordance with the Corporations Act 2001, including giving a true and fair view of the financial position and performance of the Group, and in compliance with Australian Accounting Standards and the Corporations Regulations 2001 • implementing necessary internal control to enable the preparation of a Financial Report i n accordance with the Corporations Act 2001, including giving a true and fair view of the financial position and performance of the Group, and that is free from material misstatement, whether due to fraud or error • assessing the Group and Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the Financial Report Our objective is: • to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and • to issue an Auditor’s Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. 56
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Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/media/bwvjcgre/ar1_2024.pdf. This description forms part of our Auditor’s Report. Report on the Remuneration Report Opinion In our opinion, the Remuneration Report of Bubs Australia Limited for the year ended 30 June 2026, complies with Section 300A of the Corporations Act 2001. Directors’ responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001. Our responsibilities We have audited the Remuneration Report included in pages 11 to 18 of the Directors’ report for the year ended 30 June 2026. Our responsibility is to express an opinion as to whether the Remuneration Report complies in all material respects with Section 300A of the Corporations Act 2001, based on our audit conducted in accordance with Australian Auditing Standards. KPM_INI_01 SIG_01 _01 PAR_POS_01 PAR_DAT_01 PAR_CIT_01 KPMG Julie Carey Partner Melbourne 27 August 2026 BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 57
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1. Shareholding as at 30 June 2026 a. Distribution of shareholders Range Total holders Units % Units 1 - 50,000 18,797 140,367,491 15.70 50,001 - 200,000 1,530 155,648,169 17.41 200,001 - 500,000 354 115,638,355 12.93 500,001 - 2,500,000 165 170,963,449 19.12 2,500,001 - 10,000,000 29 139,658,062 15.62 10,000,001 - 100,000,000 4 171,854,512 19.22 100,000,001 Over – – – Total 20,879 894,130,038 100.00 b. Unmarketable parcels Range Minimum Parcel Size Holders Units Minimum $500.00 at $0.077 per unit 6,493 12,709 27,790,191 c. Voting rights The voting rights attached to each class of equity security are as follows: Ordinary shares: each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a show of hands. Other Information 58
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d. Top 20 shareholders – Ordinary Shares Rank Name Units % Units 1 C2 CAPITAL GLOBAL EXPORT-TO-CHINA FUND 76,288,510 8.53 2 ATATURK INVESTMENTS PTY LTD 57,586,374 6.44 3 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 21,950,137 2.45 4 CITICORP NOMINEES PTY LIMITED 16,029,491 1.79 5 KEONG LIM PTY LIMITED <SK LIM FAMILY A/C> 9,724,000 1.09 6 MR BENJAMIN PAUL LANDON 8,001,271 0.89 7 BNP PARIBAS NOMINEES PTY LTD <IB AU NOMS RETAILCLIENT> 7,250,796 0.81 8 MR JIANLIN ZHOU 7,008,000 0.78 9 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 7,007,040 0.78 10 CODE NOMINEES PTY LTD <RETAIL A/C> 6,813,332 0.76 11 VELROSSO PTY LTD <HARVEY 1995 DISC A/C> 6,700,000 0.75 12 LAVYA PTY LTD <LAVYA FAMILY A/C> 6,300,905 0.70 13 FINCLEAR SERVICES PTY LTD <SUPERHERO SECURITIES A/C> 5,732,879 0.64 14 BOOM SECURITIES (HK) LIMITED <CLIENTS ACCOUNT> 5,219,561 0.58 15 COSTA ASSET MANAGEMENT PTY LTD <COSTA ASSET MGMT UNIT A/C> 5,200,000 0.58 16 BNP PARIBAS NOMINEES PTY LTD <CLEARSTREAM> 4,738,012 0.53 17 STABLE CHARTER LIMITED 4,615,385 0.52 18 MR XIN FAN 4,500,000 0.50 19 MS LIYING WANG 4,200,000 0.47 20 MR GILBERT PETER JAMES BATTISTELLA 4,050,089 0.45 Top 20 holders of ORDINARY FULLY PAID SHARES (Total) 268,915,782 30.08 Total Remaining Holders Balance 625,214,256 69.92 BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 59
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a. Registered office 23 Nina Link, Dandenong South, VIC 3175 Australia b. Principal office 23 Nina Link, Dandenong South, VIC 3175 Australia c. Registers of securities Computer Investor Services Pty Ltd d. Stock exchange listing Quotation has been granted for all the ordinary shares of the Company on all member exchanges of the Australian Securities Exchange Limited e. Unquoted securities Share rights over unissued shares – The Group has 21,908,714 share rights. Directors Paul Jensen Joe Coote Steve Lin Pascal De Petrini Lori Tauber Marcus Company secretary Olga Smejkalova Acclime Registered office and domicile Bubs Australia Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered office is: 23 Nina Link, Dandenong South VIC 3175 Australia Share registry Computershare Investor Services Pty Limited Level 2, Reserve Bank Building 45 St George’s Terrace Perth WA 6000 Auditors KPMG Tower Two, Collins Square 727 Collins Street Melbourne VIC 3008 Australian securities exchange ASX Code: BUB Corporate Directory BUBS AUSTRALIA LIMITED | 2026 Preliminary Final Report 61