PRESENTATION TITLE PRESENTATION TITLEPRESENTATION … · 2018-09-06 · PRESENTATION...
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PRESENTATION TITLEPRESENTATION TITLEPRESENTATION TITLEASX SMALL & MID CAP CONFERENCE 2018
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Bubs® provides quality nutrition for every stage of a child’s development.
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Specialty dairy portfolio includes CapriLac® and Coach House Dairy® products
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Digestion is a key criteria for parents when choosing which infant formula tofeed their child.
The unique protein and fat structure in goat’s milk makes it easier for thebody to break down and can be absorbed more gently.
Goat milk formula is ideal for infants suffering from a cow milk proteinintolerance or other digestive issues, ie. wind, regurgitation, colic, reflux,congestion, skin rash, or eczema.
Why goat milk?
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PRESENTATION TITLEPRESENTATION TITLEPRESENTATION TITLE
1 Goat infant formula milk is another fast growing trend in China with many brands entering in speed
5.7
8.0
11.6
15.5
2016 2017 2018 2020
Market size (retail value)Bn RMB
CHINESE DEMAND FOR GOAT MILK FORMULA
• Goatmilkbasedformulaisexperiencingrapidgrowth,nowaccountingfor5-10%shareoftotalcategory
• CategoryleaderNetRevenue¥1.2Bn(+55%YOY)
• Priceindexabovecategory
• Consumersaretradinguptopremiumbrands,driving+vevaluegrowth
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In December 2017, Bubs Australia acquired 100% of NuLac Foods, transforming the Company into a clear leader in the goat dairy landscape, supplying >60% of Australia’s total goat milk production.
Guarantees ongoing exclusive access to locally sourced quality fresh goat milk at a fixed price.
The milk pool has grown to >13 million Lt/yr, or 1,500T milk powder. Plans to further grow the combined herd to 50,000 milking goats.
Australia’s largest producer of goat dairy products
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Milk Processing
49.9% stake in CNCA registered dairy facility to convert liquid milk to powder
VERTICAL INTEGRATION
Nutritionals
Manufacturing Agreement with Burra Foods
Farm Gate
Exclusive milk supply from Australia’s largest milking goat herd
Canning
5yr Manufacturing Agreement with Deloraine, inc.SAMR (CFDA) nomination
Bubs Brand
100% ownership of Bubs® portfolio
Specialty Dairy
100% ownership of CapriLac® and Coach House Dairy® brands
Supply chain integration and strategic partnerships provide Bubs® with a unique positioning, offering consumers product integrity, scalability and provenance.
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PERFORMANCE UPDATE
Gross sales triple to $18.42M with 330% net revenue growth YOY.Key growth drivers - Bubs® Infant Formula (+117%) & CapriLac® milk powder.
$0M
$2M
$4M
$6M
$8M
$10M
$12M
$14M
$16M
1HFY17 2HFY17 1HFY18 2HFY18
GROSSSALES- GEOGRAPHIC
Australia China EmergingMarkets
InfantFormula30%
BabyFood13%MilkPowder
36%
FreshDairy20%
Other1%
GROSSSALESFY2018- PRODUCTGROUP
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KEY METRICS
Share Price* $0.67
Market Capitalisation* $296M
Cash Balance^ $38.6M
Group Revenue^ $18.42M
Normalised EBITDA^ ($6.47M)
Net Operating Loss ($64.6M)
Overall position includes non-cash write down of $48.23M impairment to goodwill, and other payments related to the acquisition of NuLac Foods, as well as share base payment for options. This impairment has no impact on the cash or operational aspects of the Group.
*as at 4 September 2018^as at 30 June 2018
ASX: BUB is now listed in the Top 500 All Ordinaries Index
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IncreasedDomestic
Market Penetration
Enhanced Asian Focus
Brand Awareness& Impact
Innovation & Product
Development
2,500+ retail points
- Coles
- Woolworths
- Chemist Warehouse
- Aldi, Costco, Big W
- IGA & Pharmacies
China Multi-Channel
- Cross-border eCommerce
- Daigou
- Mother & Baby Stores
4 key pillars critical to delivering the future growth of the business:
Connecting with mums
- Brand design relaunch
- 120k social community
- 7.5mil influencers reach
- Programmatic targeting to
formula shoppers
- B2C website re-launch
New Product Launches
- Bubs Organic® Cereals
- CapriLac® pack extensions
- Coach House Dairy®
Caramel Flavoured Milk
- FY19 focus on expanding
nutritional & dairy portfolio
STRATEGIC PRIORITIES
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CHINA ROUTES TO MARKET
China expansion strategy is progressing in all channels as consumer demand grows.
Retail Grocery Pharmacy Cross Border eCommerce
eCommerce
Premium Grocery Mother & Baby Stores
eCommerce
Premium Grocery eCommerce
AUSTRALIA/NEW ZEALAND
CHINA
EMERGING MARKETS
Retail Grocery Pharmacy Cross Border eCommerce
eCommerce
Premium Grocery Mother & Baby Stores
eCommerce
Premium Grocery eCommerce
AUSTRALIA/NEW ZEALAND
CHINA
EMERGING MARKETS
Retail Grocery Pharmacy Cross Border eCommerce
eCommerce
Premium Grocery Mother & Baby Stores
eCommerce
Premium Grocery eCommerce
AUSTRALIA/NEW ZEALAND
CHINA
EMERGING MARKETS
Retail Grocery Pharmacy Cross Border eCommerce
eCommerce
Premium Grocery Mother & Baby Stores
eCommerce
Premium Grocery eCommerce
AUSTRALIA/NEW ZEALAND
CHINA
EMERGING MARKETS
Bubs® has 12yrs heritage and is an
established brand ranged in >2,000
retail outlets throughout Australia.
Agreement with New Times Asia
for $17M in Y1 on CBEC platforms;
JD, Alibaba, Kaola, Suning & VIP.
Bubs® organic baby food has launched
into Mother and Baby Stores. Infant
Formula pending registration.
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