Baby Bunting Group (BBN) AGM 2025 Presentation summary

FY25 financial performance

• Achieved record sales of $521.9m, up 4.7% year-on-year, with comparable sales growth of 4.2%.

• Pro forma NPAT grew 228% to $12.1m, exceeding guidance.

• Gross margin improved by 340 bps to 40.2%, with 2H margin at 40.5%.

• EBITDA reached $28.2m, representing 5.4% of sales, up 220 bps.

• Return on Funds Employed increased to 12.1%, up 630 bps.

Store network and refurbishment strategy

• Refurbished 'Store of the Future' locations delivered 28-30% sales growth year-to-date.

• Targeting 15-25% sales uplift from future refurbishments, up from initial 10%.

• 11-12 refurbishments planned for FY26, with 6 to be completed in 1H.

• Five new large format stores and up to six small format 'Baby Bunting Junior' stores planned for FY26.

• Long-term plan includes up to 80 additional stores, split between large and small formats.

Strategic and operational highlights

• Maintained #1 market position in a $6.3bn sector.

• Gross margin target raised to 41% for FY26, with medium-term goal of 42%.

• Operating leverage targeted through network growth and productivity, aiming for +10% EBITDA margin.

• New Zealand comparable store sales up 13% year-to-date.

• Capital expenditure of $30m-$35m for FY26 fully funded by operating cash flow.