• Pro Forma NPAT up 37% to $4.8m
• Comparable store sales growth of 2.2%
• Gross margin up 260 bps to 39.8%

Baby Bunting Group Ltd has reported its financial results for the six months ended 29 December 2024 (1H FY25). The company's Pro Forma Net Profit After Tax (NPAT) was $4.8 million, up 37% from $3.5 million in the prior corresponding period. The Group reported a Statutory NPAT of $3.9 million, up 45.3% compared to $1.7 million in 1H FY24. Total Sales of $254.4 million for the period were up 2.4% compared to 1H FY24, driven by comparable store sales growth of 2.2%. Gross Profit of $101.3 million was up 9.5% on 1H FY24, with Gross Profit Margin up 260 bps on 1H FY24 at 39.8%. This strong margin growth reflects the company's initiatives to simplify pricing, renegotiate supplier trading terms, and optimize the supply chain. The company also opened 2 new stores in Australia and 1 relocation, bringing the total to 75 stores. The store refurbishment program has also progressed, with three new format stores launching in 2H FY25.

FY25 pro forma NPAT is expected to be in the range of $9.5 million to $12.5 million, based on comparable store sales growth of 0% to 3%, delivering a gross margin of 40%, and CODB increases including new and annualising store costs, wage inflation, additional roles, and marketing investment.

Baby Bunting remains confident in achieving its 40% gross margin target for the full year, with additional benefits from improved trading terms, new retail media income, and freight optimisations in the second half. The company is also progressing its store refurbishment program, with the first refurbishment in Maribyrnong, Melbourne, set to open in April 2025.