Zydus Wellness Limited · NSE:ZYDUSWELL
Zydus Wellness — Q4 FY22 & FY22 Earnings Presentation
24 slides from Zydus Wellness's earnings presentation, May 17, 2022
Slide 1: Exchange cover letter for Investor Presentation
May 17, 2022 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, Please find attach
Slide 2: Q4 FY22 & FY22 Earnings Presentation
Q4 FY22 & FY22 Earnings Presentation May 17, 2022
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 and FY22 Zydus Wellness : A leading Business, Brand performance Consumer Wellness Company in India The Road ahead 3
Slide 5: Q4 FY22 and FY22 Performance
Q4 FY22 and FY22 Performance INR Million Q4 FY22 FY22 YoY Growth % 2-Yr CAGR YoY Growth % 2-Yr CAGR Net Sales 6,352 +5.7% +14.5% 19,885 +7.3% +7.1% Total Income from Operations 6,398 +5.6% +14.5% 20,091 +7.6% +6.6% EBITDA 1,415 -2.7% +16.3% 3,448 +0.1% +3.6% Reported PAT* 1,333 +0.1% +38.9% 3,089 +1
Slide 6: Leaders in 5 out of 6 categories
Leaders in 5 out of 6 categories Increased Penetration and Innovations Strengthen “Energy” credential with wider use cases Strengthening core through Relaunch of the Brand • Category-leading brand in Glucose powder with 99% plus brand • 1 lakh stores added recall • NPD Launch: 1 (Complan NutriGro) •
Slide 7: Brands Market Share update
Brands Market Share update Prickly Glucose Sugar Blended *Facial Category Powder MFD substitute Sugar heat cleansing Scrub Peel-off Fat spread Dairy powder Mkt. Rank 1 4 1 NA 1 5 1 1 1# NA Mkt. Share % 58.5 5 95.7 NA 33.7 6.5 39 76.2 NA NA ▪ Market share source: MAT March 2022 report as per Nielsen
Slide 8: Brand performance update – HFD, Glucose Powder
Brand performance update – HFD, Glucose Powder Strengthening core through Relaunch of Strengthen “Energy” credential with wider the Brand use cases ❑ As per Nielsen, the Health food drinks category has slowed in Q4. We are ❑ Early onset of summer in last quarter of financial year in key markets has
Slide 9: Brand performance update – Personal Care
Brand performance update – Personal Care Growing Faster than Market A Leader getting stronger ❑ The facial cleansing category grew by 12% and Everyuth outpaced the ❑ Nycil brand sales got impacted for the second consecutive year due to category growth and registered a strong double- digit growth dur
Slide 10: Brand performance update – Dairy, Spreads, Sweeteners
Brand performance update – Dairy, Spreads, Sweeteners Building ‘Dairy + Spread’ portfolio Replacing sugar in all forms of consumptions ❑ The Sweeteners portfolio witnessed low single-digit growth on a higher base of last year. However, the portfolio has posted a healthy double-digit CAGR growth over
Slide 11: Launches in FY22
Launches in FY22 New Launches in International markets New Complan re-launched with enhanced proposition, improved Launched new Variants of Complan chocolate taste, new packaging - supported by new TVC and consumer offers Sugar Free D’lite Cookies and chocolate spread NL Doodhshakti Professional New
Slide 12: Brands campaigns during the quarter - TVC
Brands campaigns during the quarter - TVC Glucon-D campaign with Pankaj Sugar Free – Fitness ka Pehla Kadam Tripathi Nutralite Doodhshakti Butter – It’s yummy! It’s tasty! It’s good for immunity! Everyuth Naturals campaign to drive Nutralite – Chocolate Just scrub and peel-off Got Healthy! 11
Slide 13: Brands campaigns during the quarter - Digital
Brands campaigns during the quarter - Digital Butter way to do Recipes! What’s in your Fridge? #ChotiMotiBhookh Digital post promotions 12
Slide 14: International Business
International Business UAE, Bahrain, Qatar, Myanmar, Malaysia, Taiwan, ❑ Sugar Free franchise and Complan Kuwait, Kingdom of Saudi Pakistan, Sri Lanka, constitute 93% of the overall business Arabia, Oman, Lebanon Bangladesh, Nepal, Bhutan, ❑ Top 5 markets constitute ~80% of the Maldives, Hong Kong b
Slide 15: Shifting shopping behaviour
Shifting shopping behaviour FY21 72% Leveraging changing shopper behaviour, capitalized by FY22 67% investing in building stronger presence in Organized Trade ❑ Focused spends on Visibility and Promotions ❑ Driving awareness and consideration through targeted digital engagements Organized Retail Sha
Slide 16: Headwinds in FY22…continuing into FY23
Headwinds in FY22…continuing into FY23 Key Raw Materials Milk RPO* Aspartame DMH* Diesel % Increase in Rs/Kg Mar 19 vs. Mar 22 24% 106% 46% 3% 33% % Increase in Rs/Kg 8% 39% 40% 6% 21% FY 21 vs. FY 22 FMCG Industry facing same headwinds in FY ZWL actions to mitigate gross margin hit - ❑ Inflation in
Slide 17: Multiple levers to offset the cost inflation
Multiple levers to offset the cost inflation Building an Efficient Supply Chain Reorganizing Manufacturing Operations ❑ Digitalization for better demand and supply planning ❑ Distributed manufacturing for business continuity. Glucon-D at 3 facilities, ❑ Strategic long-term partnership for key ingred
Slide 18: 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 Build scale in international Open to bolt-on acquisitions portfolio diversification and business by focusing on at the right time expansion
Slide 19: The building blocks
The building blocks Category Building Leading Route to Market Digital backbone to Inorganic play for gap Volume led focus Enhanced distribution infra – decision making filling 3Mn+ reach (with 1 Mn direct Digitizing the whole value chain – Recruit new consumers Proactively look for Bolt-on coverage)
Slide 20: Innovation to drive differentiation…
Innovation to drive differentiation… ❑ New R&D facility at Ahmedabad to drive innovations that are “Good for You” ❑ Strong team of Post Docs, PHD’s and technology experts with global experience ❑ Tie ups with top academic and research institutions in India and abroad ❑ Promoting user friendly and ec
Slide 21: Awards and Recognitions
Awards and Recognitions Campaign Name – India Ka Longest Campaign Name – India Ka Longest Breakfast Table Breakfast Table ✓ Gold - Content Marketing (CPG_F&B) ✓ Silver - Use of User Generated Content ✓ Bronze - Experiential (CPG) Category ✓ Bronze - Marketing Excellence During COVID-19 Lockdown Rece
Slide 22: Awards and Recognitions
Awards and Recognitions World HRD Congress Integrated Manufacturing excellence initiatives by Kaizen Hansei ✓ CEO with HR Orientation • IMexI Award - Aligarh plant ✓ Organization with • IMexI - Sikkim plant Innovative HR Practices NAMC (National award for manufacturing competitiveness) by IRIM ✓ Dre
Slide 23: Summary Financials FY22 & 4Q FY22
Summary Financials FY22 & 4Q FY22 4Q FY21 4Q FY22 YoY Growth 2Y CAGR FY21 FY22 YoY Growth 2Y CAGR Net Sales 6,008 6,352 5.7% 14.5% 18,537 19,885 7.3% 7.1% Total Operating Income 6,057 6,398 5.6% 14.5% 18,667 20,091 7.6% 6.6% Gross Contribution 3,307 3,254 -1.6% 11.2% 10,218 10,287 0.7% 2.0% HR Cost
Slide 24: THANK YOU
THANK YOU Title Layout
Zydus Wellness — Q4 FY22 & FY22 Earnings Presentation on 6ix