Zydus Wellness Limited · NSE:ZYDUSWELL
Zydus Wellness — Q1 FY23 Earnings Presentation
19 slides from Zydus Wellness's earnings presentation, Jul 29, 2022
Slide 1: Q1 FY23 Earnings Presentation
Q1 FY23 Earnings Presentation July 29, 2022
Slide 2: Safe Harbour Statement
Safe Harbour Statement This presentation contains certain forward-looking statements including those describing Zydus Wellness’s strategies, strategic direction, objectives, future prospects, estimates etc. Investors are cautioned that “forward looking statements” are based on certain expectations,
Slide 3: Agenda
Agenda Financial performance – Q1FY23 Zydus Wellness : A leading Business, Brand performance Consumer Wellness Company in India The Road ahead 3
Slide 4: Q1 FY23 Performance
Q1 FY23 Performance INR Million Q1 FY22 Q1 FY23 YoY Growth % 2-Yr CAGR Net Sales 5,882 6,930 17.8% 13.7% Total Income from Operations 5,976 6,968 16.6% 13.9% Gross contribution 3,310 3,782 14.2% 12.4% EBITDA 1,404 1,481 5.5% 10.0% Reported PAT 1,308 1,370 4.7% 23.9% Adjusted PAT 1,308 1,399 7.0% 25.
Slide 5: Leaders in 5 out of 6 categories
Leaders in 5 out of 6 categories Increased Penetration and Innovations Strengthen “Energy” credential with new launches Strengthening core through Relaunch of the Brand • Category leading brand with 99% plus brand recall • Focused on scientifically proven claims on memory and • Surpassed 60%* market
Slide 6: Brands Market Share update
Brands Market Share update Prickly Glucose Sugar Blended *Facial Fat Category HFD heat Scrub Peel-off Dairy Powder substitute Sugar cleansing spread powder Mkt. Rank 1 5 1 NA 1 5 1 1 1# NA Mkt. Share % 60.4 4.8 95.5 NA 34.2 6.6 41.8 76.0 NA NA Market share source: MAT June 2022 report as per Nielsen
Slide 7: Quarterly - Brand performance update – HFD, Glucose Powder
Quarterly - Brand performance update – HFD, Glucose Powder Strengthening core through Relaunch of Strengthen “Energy” credential with new the Brand launches ❑ Continued slow down in the Health Foods Drink category compounded by ❑ The brand witnessed double digit growth led by revival in the market d
Slide 8: Quarterly - Brand performance update – Personal Care
Quarterly - Brand performance update – Personal Care Growing Faster than Market A Leader getting stronger ❑ Strong double-digit growth witnessed during the quarter. The brand was ❑ With the good onset of summer season, the Nycil brand witnessed a supported by TV and digital campaigns for its sub-seg
Slide 9: Quarterly - Brand performance update – Dairy & Spreads, Sweeteners
Quarterly - Brand performance update – Dairy & Spreads, Sweeteners Building ‘Dairy + Spread’ portfolio Replacing sugar in all forms of consumptions ❑ Due to high last year’s base of COVID wave which led to high diabetic ❑ The brand registered yet another strong double-digit growth during the consump
Slide 10: Brands campaigns during the quarter - Media
Brands campaigns during the quarter - Media Complan - Superior Nutrition Campaign Glucon D - Campaign with Pankaj Tripathi Sugar Free - Endorsement with Katrina Kaif 10
Slide 11: Brands campaigns during the quarter - Digital
Brands campaigns during the quarter - Digital Nutralite - Endorsement with Shilpa Shetty Everyuth - Active Instagram Presence Sugar Free - Influencer driven testimonials 11
Slide 12: International Business – Presence in more than 25 countries
International Business – Presence in more than 25 countries UAE, Bahrain, Qatar, Kuwait, Myanmar, Malaysia, Taiwan, ❑ Sugar Free franchise and Complan Kingdom of Saudi Arabia, Pakistan, Sri Lanka, Bangladesh, constitute 93% of the overall business Oman, Lebanon Nepal, Bhutan, Maldives, Hong Kong ❑ T
Slide 13: Headwinds in FY22…continuing into FY23
Headwinds in FY22…continuing into FY23 Key Raw Materials Milk RPO* Aspartame Diesel % Increase in Rs/Kg 30%+ 150%+ 75%+ 40%+ Jun 19 vs. Q1 FY 23 % Increase in Rs/Kg 5%+ 20%+ 25%+ 55%+ Q1 FY 23 vs. Q1 FY 22 FMCG Industry continues to face same headwinds ZWL actions to mitigate gross margin hit ❑ Infl
Slide 14: Multiple levers to build leaner and efficient organization – Transformation 2.0
Multiple levers to build leaner and efficient organization – Transformation 2.0 Building an Efficient Supply Chain Reorganizing Manufacturing Operations Revisited manufacturing footprint focusing on redistributing the Digitalization for better demand and manufacturing of same product in different ge
Slide 15: Building Route to market to adapt shifting channel mix
Building Route to market to adapt shifting channel mix • Channel mix shift towards • Direct reach ~6 lakh stores • Implementing Integrated MT+Ecom from 14% (FY 21) to expansion across sub channels Business Planning (IBP) tool 18% (FY 22). Potential to to automate the demand increase to 25% in next f
Slide 16: Three Pillars to drive growth – staying on course
Three Pillars to drive growth – staying on course Accelerate Growth of Core Build International Presence Significantly Grow Scale Brands Innovations to focus on portfolio Build scale in international Open to bolt-on acquisitions at diversification and expansion with business by focusing on SAARC, th
Slide 17: The building blocks
The building blocks Category Building Leading Route to Market Digital backbone to decision Inorganic play for gap Volume led focus Plan to enhance distribution infra making filling Recruit new consumers to 3Mn+ reach and 1 Mn direct Digitizing the whole value chain – Proactively look for Bolt-on cov
Slide 18: Summary Financials Q1FY23
Summary Financials Q1FY23 INR Million 1Q FY22 1Q FY23 YoY Growth 2Y CAGR Net Sales 5,882 6,930 17.8% 13.7% Total Operating Income 5,976 6,968 16.6% 13.9% Gross Contribution 3,310 3,782 14.2% 12.4% HR Cost 430 451 4.9% 3.1% Advertisement Expenses 693 962 38.9% 39.9% Other Expenses 784 888 13.3% 2.1%
Slide 19: Thank You
THANK YOU Title Layout