Zydus Wellness Limited · NSE:ZYDUSWELL
Zydus Wellness — Q4 FY24 Earnings Presentation
35 slides from Zydus Wellness's earnings presentation, May 14, 2024
Slide 1: Investor Presentation cover letter to exchanges
ZY.dUS Wellness _ _ _ _ _ _ _ _ _ _ __ May 14, 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: I
Slide 2: Q4 FY24 Earnings Presentation
Q4 FY24 Earnings Presentation May 14, 2024 Zv.dus Wellness
Slide 3: Safe Harbour Statement
Safe Harbour Statement ZY.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 ~ G/ucon-01., /ns/;Jntfnergy ( Sugar Nutralite· \ Free·· ,aw.tau, 3
Slide 5: Operating Environment – Overview / Financial Performance
Operating Environment – Overview & ZY.dUS Wellness Financial Performance
Slide 6: Gradual demand progression in select consumption spaces
Gradual demand progression in select consumption spaces Zv.dus Wellness Gradual demand uptick Mixed trend in Commodities • Demand trend shows a gradual progression in • Commodity rates on a rising trend sequentially for selected consumption spaces some key inputs while for others they continue to de
Slide 7: Key input rate trends towards recovery of Gross Margins
ZY.dUS Key input rate trends towards recovery of Gross Margins Wellness Milk Edible oils* DMH* +3.9% vs Q4 FY22 +17% vs Q4 FY22 -33% vs Q4 FY22 -11.6% vs Q4 FY23 +3% vs Q4 FY23 -11% vs Q4 FY23 -4.3% vs Q3 FY24 +1% vs Q3 FY24 -0.4% vs Q3 FY24 Q4 FY22 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY22 Q4 FY23 Q3 FY24 Q4
Slide 8: Gross margin recovery with right actions…
Zv.dus Gross margin recovery with right actions… Wellness Continuous efforts to improve gross margins with calibrated price increases across portfolio Efficient hedging strategy for key inputs Gross Margin % to Net Sales Y-o-Y + 10 - 165 + 198 + 418 + 377 + 193 Gap 54.4% bps 50.6% 52.4% 50.8% 47.7%
Slide 9: Segment performance snapshot
Zv.dus Segment performance snapshot Wellness Food & Nutrition Personal Care Q4 FY 24 - Net Sales (INR Million) --........ Nutralite - HIE!!► 9.6% t 7,780 7,099 Growth Y-o-Y [ 6.0% ] Growth Y-o-Y [ 23.0% ] Q4FY23 Q4FY24 FY 24 - Net Sales (INR Million) Food & Nutrition Personal Care 22,426 3.2% t 23,1
Slide 10: Financial highlights for the Quarter and Financial year
Zv.dus Financial highlights for the Quarter and Financial year Wellness Q4 FY24 FY24 INR Million YoY Growth % INR Million YoY Growth % Net Sales 7,780 9.6% 23,152 3.2% Total Income from Operations 7,827 9.8% 23,279 3.2% Gross Margins 4,277 18.1% 11,895 7.3% Gross Margins (% to Net Sales) 54.4% t +37
Slide 11: Business Highlights
ZY.dUS Business Highlights Wellness
Slide 12: Leaders in 5 out of 6 categories
Zv.dus Leaders in 5 out of 6 categories Wellness Strengthen “Energy” credential with new launches Strengthening core through Relaunch of the Brand Glucon·D< Jnstantfnergy • Category leading brand with 99% plus brand recall • Focused on scientifically proven claims on memory and • ~60% market share i
Slide 13: Building sustainable business performance
Zv.dus Building sustainable business performance 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# l#fii+I MAT Feb'21 MAT Feb'22 MAT Feb'23 MAT Feb'24 PHP ■ NYCIL Driving continuous volume growth* Volume Market share 36.5 32.7 MAT Mar'20 MAT Mar'24 *As per MAT March 2024 Nielsen report #As per MAT Fe
Slide 15: Driving the category growth
Zv.dus Driving the category growth 1 _____________________w--=ellness Recruiting new consumers for the Glucose powder Launched Glucon-D Activors – category# An Electrolyte Engery Drink for on the go consumption G/ucon-lJ; V ► +242 bps MAT Feb'21 MAT Feb'22 MAT Feb'23 MAT Feb'24 Glucon D ■ Glucose Po
Slide 16: Driving the category growth
Zv.dus Driving the category growth Wellness Driving market share ❖Widening the portfolio basket ❖Driving double digit growth at 4 year CAGR^ ❖Superior product offering along with strong campaigns focused on recruiting new users ❖Scrub and peel off continues to strengthen its leadership with growth i
Slide 17: Winning in Competitive Market
Zv.dus Winning in Competitive Market Wellness Franchise continues to grow ❖Penetration# continues to grow for 3 successive years _____. +26BP _____. +23BP MAT Feb'21 MAT Feb'22 MAT Feb'23 MAT Feb'24 ❖Volume offtakes* continue to grow ahead of the category ❖Growth driven by stronger campaign with 360
Slide 18: Winning in Competitive Market
Zv.dus Winning in Competitive Market Wellness Nutrcllite· Consistent strong volume growth ..,511$1J,,M♦ ❖Widening the portfolio basket ❖Double digit growth at 4 year CAGR^ with consistent volume growth driven by a wide portfolio and supported by focused B2B and B2C teams ❖Continued to support the br
Slide 19: Building relevance to new age consumers
Zv.dus Building relevance to new age consumers Wellness Efforts to leverage changing shopper behavior and target new age consumers fruitful Channel specific innovative E-commerce exclusive packs & E-commerce saliency^ 1 marketing initiatives 2 3 promotions 6.2% 5.2% 4.6% ,.,. .:.. Sf'C 3.3% Sugar Fr
Slide 20: Navigating Challenges
Zv.dus Navigating Challenges Wellness Suglf Free· Offtake continues to get stronger ❖Sugar Free has maintained its number one position with a market share of 95.9%* rm ❖Driven by new campaign and distribution expansion, Sugar Free Green continues double-digit growth^ since last 12 quarters. Contribu
Slide 21: Continuing to strengthen brand leadership
Zv.dus Continuing to strengthen brand leadership Wellness Glucon·DI. "-":::::"/ Suga~ Free™ rm I ever,,lf h ® N_u~r~te· ~ Jnaturals ♦---- - - ---- - - ---- - - ---- - - ---- - - ► __,; ♦- - - ---- - - ---- - - --► Category 0 Glucose Powder D HFD [_____)[ Sugar substitute Blended Sugar l [__)[ Prickl
Slide 22: Campaigns and initiatives
Zv.dus Campaigns and initiatives Wellness Sampling drive and regional promotions to drive consumption THAKAAN GONE. ENERGY ON. 21
Slide 23: Campaigns and initiatives
Zv.dus Campaigns and initiatives Wellness New TVC with Celebrity Madhuri Dixit and Sneha I I -----------------------------------------------------------------------------------------------------------------, I I I I I I I I I I I I I-------------------------------------------------------------------
Slide 24: Campaigns and initiatives
Zv.dus Campaigns and initiatives Wellness ✓ -- ),- ( Sugar Driving consumption of Sugar Free Green Digital Campaign “New Year No Sugar” Free~ 1•Trending #NewYearNoSugar 2,026posl~ Sugar Free D’lite Valentine Day’s promotions 23
Slide 25: Campaigns and initiatives
Zv.dus Campaigns and initiatives Wellness Digital initiatives and Print campaign to drive Nutralite dairy and spread range ~ -=---=--.. . . . ---- .... -.- ·- ··- ---•· --- DelhiTi-~~- --___·-------- ·-..,..__ --- --- ---· Istill live life on myown terms: Konkona --.-- ··--..,..._______ ----·---w---
Slide 26: Awards and Recognitions
Awards and Recognitions Zv.dus Wellness HR Team won 1st prize in the Private Nycil won BRONZE for Sugar Free D’lite has won “Product of Sector Manufacturing category at “Best Campaign in Personal Care” the Year Gulf 2024” Award in the 33rd National Awards for Innovative category at DIGIES Awards 202
Slide 27: Continued momentum in International business..
Zv.dus Continued momentum in International business.. Wellness UAE, Bahrain, Qatar, Kuwait, Myanmar, Malaysia, Taiwan, Kingdom of Saudi Arabia, Pakistan, Sri Lanka, Bangladesh, Oman, Lebanon Nepal, Bhutan, Maldives, Hong ❖ Sugar Free franchise and Complan Kong constituting ~ 90% of the overall busin
Slide 28: Environmental, Social and Governance
Zv.dus Environmental, Social and Governance Wellness ·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·- • • Improved ESG Score and ranking in Corporate Sustainability Assessment by I S&P Global (Dow Jones Sustainability World Index) -·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-
Slide 29: The Road Ahead
ZY.dUS The Road Ahead Wellness
Slide 30: 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 31: The building blocks
Zv.dus The building blocks 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 32: 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 17.5% (FY22) to plan to take it to ~7 lakhs in the dashboarding of key KPI’s as Building future
Slide 33: Appendix
ZY.dUS Appendix Wellness
Slide 34: Financial Summary – P&L
Zv.dus Financial Summary – P&L Wellness INR Million Q4 FY24 Q4 FY23 YoY Gr. % YTD FY24 YTD FY23 YoY Gr. % Net Sales 7,780 7,099 9.6% 23,152 22,426 3.2% Total Operating Income 7,827 7,130 9.8% 23,279 22,548 3.2% Gross Contribution 4,277 3,623 18.1% 11,895 11,088 7.3% Gross Contribution Margin-(% of n
Slide 35: 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