Baby Bunting Group (BBN) H2 2026 earnings summary

Executive summary

• Achieved record sales of $556.0m (AUD 556 million), up 6.5% year-over-year, with comparable store sales growth of 3.5%.

• Pro forma NPAT grew 33.9% to $16.1m, with statutory NPAT up 17.5% to $11.2m.

• Gross margin reached a record 41.2%, up 100 bps year-over-year, driven by exclusive product sales and retail media income.

• Store of the Future refurbishments delivered 18% sales growth, with 12–15 refurbishments completed and 3 new large-format stores opened.

• Online sales now represent 25.3% of total sales, up from 23.1% last year, with strong contributions from new revenue streams like Baby Bunting Media.

Financial highlights

• EBITDA increased 33.4% to $37.6m (6.8% of sales), with margin up 140 bps year-over-year; second half EBITDA margin was 8.1%, up 280 bps.

• Gross profit rose 9.3% to $229.2m, with softgoods growth up 12.9%.

• Net debt at $16.2m, with over $60m undrawn headroom and a new $90m facility extended to September 2029.

• Cash conversion ratio improved to 96.4%, with net operating cash flow of $36.2m.

• Return on Funds Employed increased to 15.1% from 12.1%.

Outlook and guidance

• FY27 pro forma NPAT expected between $19.0m and $21.0m, with total sales guidance of $585m–$600m and gross margin target of 42%.

• Comparable store sales growth projected at 3%–5%, with 10–12 store refurbishments and 3 new large format store openings planned.

• Capital expenditure for FY27 guided at $33m–$37m, fully funded by operating cash flow.

• New Zealand operations targeted to reach break-even in FY27, with further network expansion planned.

• Targeting 10%+ EBITDA margin long-term, with continued focus on gross margin expansion and operating leverage.