Baby Bunting’s Revenue Climbs 4.7% to $521.9M, NPAT Soars 462%
Baby Bunting Group Limited reported a remarkable 462% increase in statutory net profit after tax for FY2025, driven by strong sales growth and strategic store refurbishments. The company also advanced its sustainability initiatives and expanded its digital and retail media businesses.
- Revenue up 4.7% to $521.9 million
- Statutory net profit after tax surged 462% to $9.5 million
- Pro forma NPAT increased 228% to $12.1 million
- Successful launch of Store of the Future refurbishment program
- No dividend declared for FY2025, net debt reduced to $4.6 million
Strong Financial Performance Amid Challenging Retail Environment
Baby Bunting Group Limited has delivered a standout financial performance for the 52 weeks ended 29 June 2025, reporting a 4.7% increase in revenue to $521.9 million. More impressively, statutory net profit after tax (NPAT) soared by 462% to $9.5 million, while pro forma NPAT, which excludes certain one-off expenses, rose 228% to $12.1 million. These results reflect the company’s successful execution of its strategic initiatives despite ongoing cost-of-living pressures and a competitive retail landscape.
Store of the Future and Network Expansion Drive Growth
A key highlight for Baby Bunting in FY2025 was the rollout of its Store of the Future program, which reimagines the customer experience through activity-led store designs that feel more like inviting homes than traditional retail outlets. The refurbished stores at Maribyrnong, Preston, and Gepps Cross have exceeded sales and margin expectations, with comparable store sales growth well above the initial 10% target. Encouraged by this success, the company plans to refurbish up to twelve stores annually and open five new stores in Australia and New Zealand in FY2026, including a new small format pilot targeting high-traffic mall locations.
Digital and Retail Media Expansion
Baby Bunting’s omni-channel strategy continues to gain traction, with online sales growing 10.8% to represent 23.1% of total sales. The company has activated 100% of its stores for online order fulfillment, enhancing customer convenience and inventory efficiency. Additionally, BabyBuntingMedia, the company’s retail media business, leverages its physical and digital assets to create new revenue streams by connecting brand partners with its extensive customer base, which includes over 800,000 active loyalty members.
Sustainability and Governance Initiatives
In line with growing stakeholder expectations, Baby Bunting advanced its sustainability agenda, notably expanding its car seat recycling program across Melbourne stores and diverting nearly 2.5 tonnes of used car seats from landfill. The company also strengthened community partnerships, raising over $715,000 for charities supporting families. On the governance front, the Board welcomed Stephen Roche as Chair and appointed Debra Singh as an independent Non-Executive Director and Chair of the Remuneration Committee, enhancing board capabilities during this pivotal growth phase.
Disciplined Capital Management and Remuneration
Baby Bunting maintained a disciplined approach to capital allocation, funding growth initiatives through robust operating cash flow and reducing net debt from $13 million to $4.6 million. Reflecting this prudent stance, the Board elected not to pay a dividend for FY2025. Executive remuneration remains closely aligned with performance, with the CEO and CFO earning 100% and 94% respectively of their short-term incentive opportunities, supported by long-term incentive plans tied to shareholder returns and operational metrics.
Outlook
Looking forward, Baby Bunting is well-positioned to extend its market leadership in the $6.3 billion specialty baby goods market across Australia and New Zealand. With a clear strategy focused on market share growth, EBITDA improvement, and enhanced return on invested capital, the company aims to continue its transformation and deliver sustainable shareholder value through further store network expansion, digital innovation, and operational excellence.
Bottom Line?
Baby Bunting’s FY2025 results mark a decisive turnaround, but execution of its ambitious store rollout and digital growth plans will be critical to sustaining momentum.
Questions in the middle?
- How will Baby Bunting’s small format store pilots perform and influence future expansion?
- What impact will BabyBuntingMedia have on overall revenue and profitability in coming years?
- How will the company balance growth investments with shareholder returns given the decision to withhold dividends?