Response to ASX Aware Letter

• Pro forma NPAT of $12.1m, up 228% vs pcp, at upper end of guidance range
• Record total sales of $521.9m, up 4.7% vs pcp, with 4.2% comparable store sales growth
• Gross margin of 40.2% up 340 bps vs pcp, exceeding FY25 40% target

Baby Bunting Group Ltd (ASX:BBN) has responded to an ASX Aware Letter, providing explanations for the information disclosed in its FY25 results announcement. The company stated that the pro forma NPAT of $12.1 million, up 228% vs pcp and at the upper end of its guidance range, was within the range it had previously disclosed to the market. Similarly, the record total sales of $521.9 million, up 4.7% vs pcp, and the gross margin of 40.2%, up 340 bps vs pcp and exceeding the FY25 40% target, were also in line with the company's previous guidance and analyst forecasts. BBN noted that sales performance is one input into its financial performance, and that NPAT is the key metric. The company also provided details on when it became aware of the information and its compliance with Listing Rule 3.1. BBN stated that it is in compliance with the Listing Rules and that its responses have been authorized and approved by its Board.

BBN expects FY26 pro forma NPAT to be in the range of $17.0 million to $20.0 million, which is 12% above the prior consensus of $16.5 million.

BBN stated that comparable store sales growth for FY26 is assumed to be 4%-6%. The company also provided guidance on its plans for FY26.