Baby Bunting Group (BBN) investor relations material

FY26 financial performance

• FY26 sales were $556.0m, up 6.5% YoY; comparable sales grew 3.5%.

• Gross margin reached 41.2%, up 100 bps YoY; 2H margin was 41.4%.

• Pro forma EBITDA, excluding AASB 16 lease accounting, was $37.6m or 6.8% of sales, up 140 bps YoY; 2H was 8.1% of sales.

• Pro forma NPAT was $16.1m, up 33.9% YoY and 54% in 2H; statutory NPAT was $11.2m, up 17.5%.

• Net debt was $16.2m, with $60m debt headroom; cash conversion was 96%, versus 82% in FY25.

Strategy and operating progress

• Long-range plan targets a return to more than 10% EBITDA margin, with gross margin above 43% and cost of doing business moving toward 31.6%.

• Network ambition is more than 120 large-format stores across Australia and New Zealand; Store of the Future refurbishments target 10–12 annually.

• FY26 network activity included 12 completed refurbishments, three large-format openings and three BabyBunting Junior pilot stores; 15 refurbished stores were open and trading.

• Store of the Future sales growth was 18% in FY26 against a 15%–25% target range; the cumulative average later reached 20%.

• BabyBuntingMedia generated $5.8m revenue in its first full year; in-store endless aisle launched across all stores and online delivery scaled to full store fulfilment.

FY27 priorities and outlook

• FY27 targets include sales of $585m–$600m, comparable sales growth of 3%–5%, gross margin of 42% and capex of $33m–$37m.

• FY27 pro forma NPAT is expected at $19.0m–$21.0m, assuming stated sales, comparable growth and gross margin targets; capex is expected to be fully funded by operating cash flow.

• After the first 14 weeks to 4 October 2026, underlying comparable sales growth was 2.2% YTD; Australia was up 2.0% and New Zealand 8.7% on a constant-currency basis.

• FY27 plans include 10–12 refurbishments, with six in 1H, and three new large-format stores; the small-format pilots remain under review.

• Refurbished stores delivered an 18% sales uplift in FY26; payback remains under three years, with each project required to clear that hurdle before capital commitment.