Zydus Wellness Limited · NSE:ZYDUSWELL
Zydus Wellness — Q4 FY23 Earnings Presentation
31 slides from Zydus Wellness's earnings presentation, May 17, 2023
Slide 1: Stock exchange cover letter for investor presentation
May 17, 2023 Listing Department Code: 531 335 BSE LIMITED P J Towers, Dalal Street, Fort, Mumbai–400 001 Listing Department Code: ZYDUSWELL NATIONAL STOCK EXCHANGE OF INDIA LIMITED Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai–400 051 Re: Investor Presentation Dear Sir / Madam, Please fin
Slide 2: Q4 FY23 Earnings Presentation
Q4 FY23 Earnings Presentation May 17, 2023
Slide 3: 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 4: Agenda
Agenda Financial performance – Q4 FY23 & FY 23 Zydus Wellness: Operating environment- Overview A leading Consumer Wellness Brand Highlights Company in India The Road Ahead 3
Slide 5: Financial Performance & Operating Environment - Overview
Financial Performance & Operating Environment - Overview
Slide 6: Operating environment: Demand trends improving sequentially
Operating environment: Demand trends improving sequentially 01 02 ZW continues to outpace FMCG Moderating Constrained sector growth Inflation Budgets 14% Rural consumers downtraded 13% Retail inflation moderating to minimize the impact of 12% sequentially inflation in their household 11% 10% budgets
Slide 7: Price inflation for our key inputs moderated (except milk)
Price inflation for our key inputs moderated (except milk) Milk RPO* DMH* +25% vs Q4 FY21 -14% vs Q4 FY21 +28% vs Q4 FY21 +21% vs Q4 FY22 -31% vs Q4 FY22 +13% vs Q4 FY22 +1% vs Q3 FY23 -1% vs Q3 FY23 +4% vs Q3 FY23 Q4FY21 Q4FY22 Q3FY23 Q4FY23 Q4FY21 Q4FY22 Q3FY23 Q4FY23 Q4FY21 Q4FY22 Q3FY23 Q4FY23 A
Slide 8: Ploughing back gross margins with right actions…
Ploughing back gross margins with right actions… Continuous efforts to improve gross margins with calibrated price increases across portfolio at appropriate time without compromising on growth helping to recover the gross margin Gross Margin % to Net Sales Y-o-Y Gap - 66 - 479 - 433 + 10 54.0% bps 5
Slide 9: Q4FY23 – Financial highlights
Q4FY23 – Financial highlights INR 7,099mn INR 7,130mn INR 3,623mn INR 1,446mn INR 1,453mn INR 1,525mn 50.6% *Margin 20.3% Margin 20.4% Margin 21.4% Margin YoY 11.8 % 11.4 % 11.4 % Growth % 2.2 % 9.0 % 14.4 % Income from Reported Net Sales Gross Margins EBITDA Adjusted PAT Operations PAT* 13.6 % 13.5
Slide 10: Q4FY23- EBITDA bridge
Q4FY23- EBITDA bridge -184 bps Key Reasons of increase are as below (almost half of it is one time in nature) – • Third party manufacturing of Glucon-D to cater to seasonal demand • Wage rate hike in north eastern belt • Inflation across alternate fuels like husk and coal Source: EBITDA% = EBITDA/To
Slide 11: FY23 – Financial highlights
FY23 – Financial highlights INR 22,426mn INR 22,548mn INR 11,088mn INR 3,372mn INR 3,104mn INR 3,204mn 48.9% *Margin 15.0% Margin 13.8% Margin 14.2% Margin YoY +12.8% +12.2% +7.8% Growth % -2.2% + 0.5% +3.7% Income from Gross Reported Net Sales EBITDA Adjusted PAT Operations Contribution PAT* +8.9%
Slide 12: Brand Highlights
Brand Highlights Waliness
Slide 13: Leaders in 5 out of 6 categories
Leaders in 5 out of 6 categories 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 • ~60% market share in the category concentration and enhance
Slide 14: Continuing to strengthen brand leadership
Continuing to strengthen brand leadership Glucose Sugar Blended Prickly heat *Facial Fat Category HFD Scrub Peel-off Dairy Powder substitute Sugar powder cleansing spread Mkt. Rank 1 5 1 NA 1 5 1 1 1# NA Mkt. Share % 60.1 4.5 96 NA 35.4 6.2 41.9 78.4 NA NA MS change YoY +159 -50 +2 NA +157 -30 +68 +
Slide 15: Power brands – On the path to be Bigger and Better
Power brands – On the path to be Bigger and Better FY 23 Revenue INR 2 Billion + 14
Slide 16: Quarterly brand performance
Quarterly brand performance Supporting brand with activations and Strengthened “Energy” credential with new communication launches ❖Continuous support by 360-degree campaigns highlighting ❖Good traction and growth registered in Q4 with arrival of highest protein, “Pack Palto, Farak Dekho”, and nutri
Slide 17: Quarterly brand performance
Quarterly brand performance Growing faster than the market Summers driving the growth ❖Continued to outpace category growth with robust growth rate ❖Gained traction during the quarter with arrival of summer season during the quarter and building market shares ❖New packaging to highlight “coolness fa
Slide 18: Quarterly brand performance
Quarterly brand performance Strong growth across the range of products Offtake turnaround continues to get stronger ❖Sweeteners portfolio witnessed a revival with mid single digit ❖Delivered robust growth for quarter four driven by well-planned growth during the quarter four digital and on-ground ac
Slide 19: International business – Presence in more than 25 countries
International business – Presence in more than 25 countries UAE, Bahrain, Qatar, Kuwait, Myanmar, Malaysia, Taiwan, ❖ Aim for robust growth of the international Kingdom of Saudi Arabia, Pakistan, Sri Lanka, Bangladesh, Oman, Lebanon Nepal, Bhutan, Maldives, Hong business , with Sugar Free franchise
Slide 20: Campaigns during the quarter (1/3)
Campaigns during the quarter (1/3) ‘Fitness Ka Pehla Kadam’ with Katrina Kaif! New Flavor ‘Mango Blast’ launched under Glucon-D Restarted Immunovolt campaign ‘Sugar Free Sundays’ with Sanjeev Kapoor! 19
Slide 21: Campaigns during the quarter (2/3)
Campaigns during the quarter (2/3) Strong Digital and Print Presence ‘Higher Protein’ content awareness campaign 20
Slide 22: Campaigns during the quarter (3/3)
Campaigns during the quarter (3/3) Valentine’s Week Engagement 21
Slide 23: Awards & Recognitions (1/2)
Awards & Recognitions (1/2) Nutralite Glucon-D Sugar Free Campaign – Baccho Ka Khel Small Budget Digital Marketing Gold Award for Best Use of Campaign Content Marketing ❖ Silver – Content Marketing ❖ Silver – Best Use of Video ❖ Bronze – Best use of Social Media 22
Slide 24: Awards & Recognitions (2/2)
Awards & Recognitions (2/2) Manufacturing Awards INDIASTAR 2022 packaging awards SIKKIM ALIGARH AHMEDABAD 23
Slide 25: The Road Ahead
The Road Ahead was.
Slide 26: Three Pillars to drive growth – staying on course
Three Pillars to drive growth – staying on course 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 SAARC, at the rig
Slide 27: 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 and direct coverage over next 3 Digitizing the whole value chain – Proactively look for Bolt-on y
Slide 28: Traditional Trade capabilities in S&D
Building Route to market to adapt shifting channel mix • Channel mix shift towards MT+Ecom from 17.5% (FY22) to • Implementation underway for 19.6% (FY23). Potential to • Direct reach ~6 lakhs stores dashboarding of key KPI’s as Building future ready increase to 25% in next few years expansion acros
Slide 29: Appendix
: Zydus Appendix Wéliness
Slide 30: Financial Summary – P&L
Financial Summary – P&L INR Million Q4 FY23 Q4 FY22 YoY Gr. % 3Y CAGR FY 23 FY 22 YoY Gr. % 3Y CAGR Net Sales 7,099 6,352 11.8% 13.6% 22,426 19,885 12.8% 8.9% Total Operating Income 7,130 6,398 11.4% 13.5% 22,548 20,091 12.2% 8.5% Gross Contribution 3,623 3,254 11.4% 11.3% 11,088 10,287 7.8% 3.9% Gr
Slide 31: 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 Zydus Wellness, Oct 21, 2022 30