Zydus Wellness Limited · NSE:ZYDUSWELL
Zydus Wellness — Q1 FY2024-25 Earnings Presentation
39 slides from Zydus Wellness's earnings presentation, Aug 2, 2024
Slide 1: Investor Presentation filing cover letter
ZY.dUS Wellness _ _ _ _ _ _ _ _ _ _ __ August 2, 2024 Listing Department Code: 531 335 BSE LIMITED P. J. Towers, Dalal Street, Mumbai–400 001 Listing Department Code: ZYDUSWELL NATIONAL STOCK EXCHANGE OF INDIA LIMITED Exchange Plaza, C/1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai–400 051 Re:
Slide 2: Q1 FY 2024-25 Earnings Presentation
Q1 FY 2024-25 Earnings Presentation August 2, 2024 zv.dus Wellness
Slide 3: Safe Harbour Statement
Safe Harbour Statement Zv.dus Wellness 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 certai
Slide 4: Agenda
Agenda Zv.dus Wellness Operating environment- Overview Zydus Wellness: Financial performance A leading Consumer Wellness Business Highlights Company in India The Road Ahead Glucon-D~ ~~/ Sugar> Nutralite ~ Free~ ,J*&!ff· W --- 3
Slide 5: Operating Environment – Overview and Financial Performance
Operating Environment – Overview & ZY.dUS Wellness Financial Performance
Slide 6: Demand trending upwards, so are the commodities prices
Demand trending upwards, so are the commodities prices Zv.dus Wellness - Positive demand uptick Mixed trend in Commodities • Demand trend shows a positive momentum • Commodity rates on a rising trend sequentially for witnessing growth across categories some key inputs • Rural demand outpacing the ur
Slide 7: Key input rate trends towards recovery of Gross Margins
Key input rate trends towards recovery of Gross Margins Zv.dus Wellness Milk Edible oils* Dextrose Monohydrate 0.8% vs Q1 FY23 -37.6% vs Q1 FY23 +14.0% vs Q1 FY23 -5.1% vs Q1 FY24 -6.5% vs Q1 FY24 +1.5% vs Q1 FY24 5.5% vs Q4 FY24 +4.8% vs Q4 FY24 -0.7% vs Q4 FY24 Q1 FY 23 Q1 FY 24 Q4 FY 24 Q1 FY 25
Slide 8: Gross margin continued to improve
Gross margin continued to be improve Zv.dus Wellness Effective hedging strategy, Favourable product mix and Tactical price increase helped drive gross margin expansion Gross Margin % to Net Sales Y-o-Y + 314 - 165 + 198 + 418 + 377 + 193 Gap bps 54.4% 55.5% 52.4% 50.8% 47.7% 44.9% Q1 FY Q2 FY Q3 FY
Slide 9: Segment performance snapshot
Segment performance snapshot Zv.dus Wellness Food & Nutrition Personal Care Net Sales (₹ in Millions) ee 20.0% t 8,391 6,992 Growth Y-o-Y Growth Y-o-Y [_15.0% _] [_41.8% _] Q1 FY 2023-24 Q1 FY 2024-25 8
Slide 10: Financial highlights for the Quarter
Financial highlights for the Quarter Zv.dus Wellness INR Millions Q1 FY 24-25 Q1 FY 23-24 YoY Growth % Net Sales 8,391 6,992 20.0% Total Revenue from operations 8,410 7,021 19.8% Gross margins 4,677 3,691 26.7% Gross margins (% to net sales) 55.5% 52.4% +314 bps y-o-y EBITDA 1,553 1,165 33.3% PBT 1,
Slide 11: Business Highlights
ZY.dUS Business Highlights Wellness
Slide 12: Leaders in 5 out of 6 categories
Leaders in 5 out of 6 categories Zv.dus Wellness Strengthen “Energy” credential with new launches Strengthening core through Relaunch of the Brand • Focused on scientifically proven claims on memory and -- Glucon·OI. w: • Category leading brand with 99% plus brand recall • ~60% market share in the c
Slide 13: Building sustainable business performance
Building sustainable business performance Zv.dus Wellness Driving the Winning in category competitive growth market Building Navigating relevance challenges to new age consumers 12
Slide 14: Driving the category growth
Zv.dus Driving the category growth Wellness Driving the prickly heat powder category penetration# MAT May'21 MAT May'22 MAT May'23 MAT May'24 NYCIL ■ Prickly Heat Powder Driving continuous volume growth* Volume Market share 36.4 32.8 *As per MAT May 2024 Nielsen report MAT May'20 MAT May'24 #As per
Slide 15: Driving the category growth
Zv.dus Driving the category growth Wellness Driving market share Launched – Eveyuth pink clay & charcoal infused Anti- Widening the portfolio basket pollution range Driving to double digit growth at 5-year CAGR^ Superior product offering along with strong campaigns focused on recruiting new Fight
Slide 16: Driving the category growth
Driving the category growth Zv.dus Wellness Recruiting new consumers for the Glucose powder category# MAT May'21 MAT May'22 MAT May'23 MAT May'24 Glucon D ■ Glucose Powder Consumption uptick in Q1 FY 2025 due to positive impact "Creative \lisuo lizat ~n. Glucon- 0 does not contain any fruirs. Fruits
Slide 17: Winning in Competitive Market
Winning in Competitive Market Zv.dus Wellness Franchise continues to grow Complan’s foray into the immunity space with the new launch of Complan Immuno-Gro Product Penetration# continues to grow for 3 successive years +44BP _______. MAT May'21 MAT May'22 MAT May'23 MAT May'24 Strong brand campaign
Slide 18: Winning in Competitive Market – Nutralite
Zv.dus Winning in Competitive Market Wellness --...__ Launched Nutralite Retail Launched Nutralite Nutralite Consistent strong volume growth Mayonnaise with carrot & ~ Professional Mayonnaise cucumber sandwich with Tandoori range spread Widening the portfolio basket Close to double digit growth at
Slide 19: Building relevance to new age consumers
Building relevance to new age consumers Zv.dus Wellness Efforts to leverage changing shopper behavior and target new age consumers Channel specific innovative E-commerce exclusive packs & Online salience^ 1 marketing initiatives 2 3 promotions 9.8% !;Ji) (!'Ct,:· 8.3% 6.4% 5.8% 225g Powder 400g Powd
Slide 20: Navigating Challenges
Navigating Challenges Zv.dus Wellness ~ Sugar Free· Offtake continues to get stronger Upgraded Sugar Free Gold to Sugar Free Gold+ with new rmr!ll formulation Sucralose + Chromium Sugar Free has maintained its number one position with a market share of 95.9%* Sugar Free Green continues double-digi
Slide 21: Continuing to strengthen brand leadership
Continuing to strengthen brand leadership Zv.dus Wellness ----.. ~ \.G/ucon·OI. Sugar rm , ever\/Olh® "-""::::/ ~ dP Free· NyJral~te • - ________ ________ !naturals _____________ - ♦ •- ____________________ -♦ Category D Glucose Powder L=1 [_____,,;H__1 [_____,J [______1L=1 [____1 L=1 L=1 HFD Sugar
Slide 22: Campaigns and initiatives – Glucon-D
Glucon·D~ ""::...... -/ Campaigns and initiatives Zv.dus Wellness ~ ATL Campaigns Digital initiatives On ground initiatives T,HAKAAN GONE. ENERGY ON. 21
Slide 23: Campaigns and initiatives – Nutralite
Nutralite ~ Campaigns and initiatives Zv.dus Wellness Digital initiatives Summer Digital Campaign Social media engagement uo, •UO CIIY111 22
Slide 24: Campaigns and initiatives
Campaigns and initiatives Zv.dus Wellness TVC with Celebrity Madhuri Dixit and Sneha Attractive consumer offers for key packs I :: __________________________________________________________________________ cc::'::.;;: _;:c_-;; ~ _ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - _, 23
Slide 25: Campaigns and initiatives – Sugar Free
Sugar>- Campaigns and initiatives Zv.dus Wellness Free · New Communication for Sugar Free during ICC Men’s T20 Driving consumption of Sugar Free Green World Cup that featured debunking of myths around using jaggery, brown sugar and honey as sugar substitutes Chef Sanjeev Kapoor's Sugar-Free Dessert
Slide 26: Campaigns and initiatives
Campaigns and initiatives Zv.dus Wellness TVC Awareness programs Change your sugar to get fitter. REGULAR REGULAR SUGAR SUGAR Net Wt: Net Wt: 500 g 500 g FO:J D FOR :;;;~R:JAI. C IF."r.,_f.l Y L:SC 1---o,a to · (:n.o~~ ....,"ag<: rr<:rt ZY.d us •1 'S,:x,o u c,, f I' m ll w i o. ,..ci u ■ I .,., 2 .,
Slide 27: Campaigns and initiatives
Campaigns and initiatives Zv.dus Wellness New TVC Print media Digital Media Via clutter-breaking Rich Media format l 'l.lfl~rnllfl,j\quf'llff~ffiiif~;ft:nljmll!<mtft.qiAAmofl'llff lliliiltt-n\rtf.rn'!'@l->l'ffift'llff~=-.mtr<.~mrnr m ~ ftirn =mfir.ll'IRITt -;rit1r<fllllt ~ tr.it fira;l'iltreinm. ,rs
Slide 28: Campaigns and initiatives
Campaigns and initiatives Zv.dus Wellness New TVC Print media Social media everY,.U Tan R mo al rub On AIR ~th BRIG T ne, TVC 27
Slide 29: Awards and Recognitions
Awards and Recognitions Zv.dus Wellness Ahmedabad Plant Aligarh Plant Sikkim Plant Nat1onal Award8 Fur l\liaout'acturlna C o rnpetttlveneHN 20%3-24 _ _ _ ._..._...,__,u••• ...• -- G<>LDMl!DAL Z.Y D U S ~ P R O f > I J< ~, .,,,. , __. .. O ■lkld... Unh NA. 1- I ONAL AWAKLlS / .-CJR N\ANUl'.AC-.::TUR
Slide 30: Continued momentum in International business
Zv.dus Continued momentum in International business.. Wellness Sugar Free franchise and Complan constituting ~ UAE, Bahrain, Qatar, Kuwait, Myanmar, Malaysia, Taiwan, Kingdom of Saudi Arabia, Pakistan, Sri Lanka, Bangladesh, 80% of the overall business Oman, Lebanon Nepal, Bhutan, Maldives, Hong
Slide 31: Sustainability highlights – FY 2023-24
Sustainability highlights – FY 2023-24 Zv.dus Wellness Key highlights on Environment 75% plants operating under Zero Liquid Discharge protocols. ,... Saved 2% ground water consumption / ton at Aligarh plant and 4.3% surface water consumption at Ahmedabad and Sikkim plants. Achieved zero waste to lan
Slide 32: Sustainability highlights – FY 2023-24
Sustainability highlights – FY 2023-24 Zv.dus Wellness ANIMAL WELFARE PROGRAMS: Conducted awareness programs for 1,600 farmers and distributed 12,000 large and 6,000 small deworming and 1,500 mineral mixture packets. DIVERSITY, INCLUSION AND WELL-BEING: • Current female employees increased by 7.4% i
Slide 33: The Road Ahead
ZY.dUS The Road Ahead Wellness
Slide 34: Three Pillars to drive growth – staying on course
Zv.dus Three Pillars to drive growth – staying on course Wellness ~ Accelerate Growth of Build International Presence Significantly Grow Scale Core Brands Innovations to focus on portfolio Build scale in international Open to bolt-on acquisitions diversification and expansion business by focusing on
Slide 35: The building blocks
The building blocks Zv.dus Wellness Category Building Leading Route to Market Digital backbone to decision Inorganic play for gap Volume led focus Plan to enhance distribution making filling Recruit new consumers infra and direct coverage Digitizing the whole value Proactively look for Bolt- over ne
Slide 36: Building Route to market to adapt shifting channel mix
Zv.dus Building Route to market to adapt shifting channel mix Wellness • Direct reach ~6 lakhs stores • Channel mix shift towards expansion across sub channels, • Implementation underway for MT+Ecom from 16.9% (Q1 FY22) plan to take it to ~7 lakhs in the dashboarding of key KPI’s as to 23.3% (Q1 FY2
Slide 37: Appendix
ZY.dUS Appendix Wellness
Slide 38: Financial Summary – P&L
Zv.dus Financial Summary – P&L Wellness INR Million Q1 FY 2024-25 Q1 FY 2023-24 Y-o-Y Growth % Net Sales 8,391 6,992 20.0% Total Operating Income 8,410 7,021 19.8% Gross Contribution 4,677 3,691 26.7% Gross Contribution Margin-(% of net sales) 55.5% 52.4% +314 bps y-o-y HR Cost 594 473 25.6% Adverti
Slide 39: Zydus Wellness Limited
Zydus Wellness Limited Regd. Office: Zydus Corporate Park, Scheme No. 63, Survey No. 536, Khoraj (Gandhinagar), Nr. Vaishnodevi Circle, S. G. Highway, Ahmedabad – 382481, India. CIN: L15201GJ1994PLC023490 +91-79-71800000 www.zyduswellness.com Zv.dus Wellness