Investor Presentaiton
FINANCIAL OVERVIEW
FY19
FY18
% CHANGE
GROSS
SALES
NET
$46.8m
$18.4m
+154%
$43.9m
$16.9m
+160%
REVENUE
GROSS*
$9.2m
$2.3m
+300%
PROFIT
For personal use only
EBITDA
STATUTORY
EBITDA
GROSS
SMARGIN*
21%
14%
+50%
bübs
Key Drivers
2H19 gross margin improved to 23% vs. 19% in 1H19, due to the optimisation of product
and channel mix, engaging new suppliers and improvements in allocating the milk pool. BubsⓇ
products delivered 35% gross margin vs. 20% in FY18. Further group margin improvement is
expected in FY20, with a full year realisation of one-step nutritional
blending at Tatura and in-house processing at Deloraine.
Strategic investment in building scale and sales momentum:
+ Investment in marketing (9% net revenue) to support strong domestic presence and building
brand awareness in China;
+ Investment to reflect capability build in core markets and corporate, with increased headcount
by 175% compared to FY18;
+ Fixed operating and administrative costs typical of business in rapid growth.
The overall statutory net loss of $35.5 million incorporates expenses incurred outside of normal
business operations:
NORMALISED
($5.9m)
($6.0m)
+1%
($34.0m)
($65.7m)
+48%
+ $20.4m one-off non-cash expense for equity linked transaction with Chemist Warehouse
+ $5.9m fair value movement payable to NuLac Foods vendors related to 2017 acquisition
+ $1.3m share based payments for options issued in FY18
7
*Gross margin does not include the inventories written off.
+ $897K corporate transaction expense associated with all FY19 M&A transactions
+ $719K finance costs relating to unwinding of deferred consideration payable
+ $404K inventories written off for discontinued products
+ $236K employee costs provision for the termination settlement with previous CEOView entire presentation