Baby Bunting Group (BBN) H2 2025 earnings summary

Executive summary

• Pro forma NPAT reached $12.1m, up 228% year-over-year, at the upper end of guidance range.

• Record sales of $521.9m, up 4.7% year-over-year, with comparable store sales up 4.2%.

• Gross margin improved to 40.2%, up 340 bps year-over-year, exceeding the 40% target.

• Store of the Future refurbishments delivered a 28% sales uplift and 40 bps higher gross margin than peers.

• No final dividend declared for FY2025 as capital is reinvested for growth and balance sheet strength.

Financial highlights

• Pre-AASB 16 EBITDA increased to $28.2m, 5.4% of sales, up 76.9% year-over-year.

• Net debt reduced to $4.6m from $13.0m prior year, reflecting strong cash flow.

• Online sales grew 10.8% year-over-year, now 23.1% of total sales, driven by new delivery options and improved checkout.

• Private label and exclusive products accounted for 47.1% of total sales, up 110 bps.

• Inventory at $95.6m, with improved quality and aging.

Outlook and guidance

• FY26 pro forma NPAT guidance: $17m–$20m.

• Full-year comparable store sales growth expected at 4%–6%, with H1 impacted by refurbishments and H2 targeted at 6%–8%.

• Targeting gross margin of 41% and CODB leverage of 30 bps.

• CapEx of $30–$35m, fully funded from operating cash flow.

• Plans to refurbish 10–12 stores and open five new large format and up to six small format pilot stores in FY26.