Zydus Wellness Limited · NSE:ZYDUSWELL
Zydus Wellness — Q1 FY24 Earnings Presentation
28 slides from Zydus Wellness's earnings presentation, Aug 3, 2023
Slide 1: Zydus Wellness – Investor Presentation Filing Letter
ZY.dUS Wellness _ _ _ _ _ _ _ _ _ _ __ August 3, 2023 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 FY24 Earnings Presentation
Q1 FY24 Earnings Presentation August 3, 2023 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 Financial performance – Q1 FY 24 Zydus Wellness: Operating environment- Overview A leading Consumer Wellness Brand Highlights Company in India The Road Ahead ~ G/ucon-01., /ns/;Jntfnergy ( Sugar Nutralite· \ Free·· ,aw.tau, 3
Slide 5: Financial Performance & Operating Environment - Overview
Financial Performance & ZY.dUS Wellness Operating Environment - Overview
Slide 6: Operating environment stable, external factors impacting demand
Operating environment stable, External factors impacting demand Zv.dus Wellness 01 02 Erratic weather Moderation in patterns commodity rates Unseasonal rains across key states Commodity rates continues to impacting off-takes of summer moderate sequentially during the products across industries quart
Slide 7: Proactively addressing all cohorts on safety
Concerns over consumption of Non-Nutritive Sweeteners raised again Zv.dus Wellness Global Regions v Q >t'"A Select language "' ( ~ \ World Health ~ Organization WHO assessment outcome iit Health Topics v Countries v Newsroom v Emergencies v Data v About WHO v • Aspartame declared “possibly carcinoge
Slide 8: Moderating price inflation to help improve gross margins going ahead
Zv.dus Moderating price inflation to help improve Gross Margins going ahead.. Wellness Milk RPO* DMH* +33% vs Q1 FY22 -14% vs Q1 FY22 +29% vs Q1 FY22 +4% vs Q1 FY23 -31% vs Q1 FY23 +12% vs Q1 FY23 +0.3% vs Q4 FY23 +0% vs Q4 FY23 +1% vs Q4 FY23 Q1FY22 Q1FY23 Q4FY23 Q1FY24 Q1FY22 Q1FY23 Q4FY23 Q1FY24
Slide 9: 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 at appropriate time without compromising on growth Unfavorable product mix due to unseasonal rains in summer season impacted the gross margin recover
Slide 10: Segment performance snapshot
Zv.dus Segment performance snapshot Wellness Net Sales (INR Million) Food & Nutrition 6930 6992 Q1FY23 Q1FY24 Sales Growth Y-o-Y [__ -1.6% ] Y-o-Y Gr. On Personal Care Net Sales O.9% t Sales Growth Y-o-Y [ 11.8% ] 9
Slide 11: Financial Highlights
Financial Highlights Zv.dus Wellness INR Million Q1 FY24 YoY Growth % Net Sales 6,992 0.9% Total Income from Operations 7,021 0.8% Gross Contribution 3,691 -2.4% EBITDA 1,165 -21.3% Reported PAT* 1,104 -19.4% Adjusted PAT 1,246 -10.9% ❑ Gross margin on net sales was at 52.4% (-165bps YoY) mainly imp
Slide 12: Brand Highlights
ZY.dUS Brand Highlights Wellness
Slide 13: 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 Glucon·D< Jnstantfnergy • Category leading brand with 99% plus brand recall • Focused on scientifically proven claims on memory and • ~60% market share i
Slide 14: Continuing to strengthen brand leadership
Zv.dus Continuing to strengthen brand leadership Wellness Glucon·DI. "-":::::"/ Suga~ Free™ suga■ ever,,lfh® N_u~r~te· ~ Jnaturals ♦---- - - - - - - - - - - - - - - - - - - - - - - - - - - ► __,; ♦- - - - - - - - - - - - - - - --► Category 0 Glucose Powder D HFD [_____)[ Sugar substitute Blended Sug
Slide 15: Quarterly brand performance
Quarterly brand performance Zv.dus Wellness Supporting brand with activations and Strengthened “Energy” credential with new communication launches ❖Quarterly volume offtakes growing faster than the category for ❖Unseasonal rains across country during summer season impacted the brand and the brands v
Slide 16: Quarterly brand performance
Quarterly brand performance Zv.dus Wellness Growing faster than the market Summers driving the growth ❖Differentiated brand in the skin care space, uniquely positioned to ❖Despite intensive competitive scenario building around the brand, meet facial cleansing needs of younger audience the brand regi
Slide 17: Quarterly brand performance
Quarterly brand performance Zv.dus Wellness Nutralite· ,.t511RNJ.M♦ Strong growth across the range of products Sugar Offtake turnaround continues to get stronger Free .. ❖Sweeteners portfolio witnessed a mid single digit offtake growth ❖The brand renovation with a wider portfolio segment around duri
Slide 18: Strong momentum in International business continues
Zv.dus Strong momentum in International business continues.. Wellness UAE, Bahrain, Qatar, Kuwait, Myanmar, Malaysia, Taiwan, Kingdom of Saudi Arabia, Pakistan, Sri Lanka, Bangladesh, Oman, Lebanon Nepal, Bhutan, Maldives, Hong Kong ❖ Sugar Free franchise and Complan constituting ~ 90% of the overal
Slide 19: Campaigns during the quarter (1/3)
Campaigns during the quarter (1/3) Zv.dus Wellness ~ Driving consumption of Sugar Free Green ( Sugar Free·· “Chhota sa Change” ‘Sugar Free Sundays’ with Sanjeev Kapoor! ), S11gar me G-wi EK CHHOTA SA CHANGE FOR YOUR FITNESS SWITCH TO SUGAR FREE GREEN 18
Slide 20: Campaigns during the quarter (2/3)
Campaigns during the quarter (2/3) Zv.dus Wellness New campaign launched – “Thakaan Gone, Energy On” Driving daily nutrition need THAKAAN GONE ENERGY ON. • GOING LIVETODAY GRPS - 650+ SPOTS - 13, 100+ WOA-5 19
Slide 21: Campaigns during the quarter (3/3)
Campaigns during the quarter (3/3) Zv.dus Wellness Nutralite· Strong digital presence and Influencer recipe videos #SrWi•W Campaigns of Nycil Talc and Body Mist Nutralite The Mom-Approved Healthier Choco Spread 20
Slide 22: The Road Ahead
ZY.dUS The Road Ahead Wellness
Slide 23: Three Pillars to drive growth – staying on course
Three Pillars to drive growth – staying on course Zv.dus 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 24: 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 infra making filling Recruit new consumers and direct coverage over next 3 Digitizing the whole value chain – Proactively lo
Slide 25: Building route to market to adapt shifting channel mix
Building Route to market to adapt shifting channel mix Zv.dus Wellness • Direct reach ~6 lakhs stores • Channel mix shift towards expansion across sub channels, MT+Ecom from 17.5% (FY22) to plan to take it to ~7 lakhs in FY 24 • Implementation underway for 21.1% (Q1 FY24) dashboarding of key KPI’s a
Slide 26: Appendix
ZY.dUS Appendix Wellness
Slide 27: Financial Summary – Quarterly P&L
Zv.dus Financial Summary – Quarterly P&L Wellness INR Million Q1 FY24 Q1 FY23 YoY Gr. % Net Sales 6,992 6,930 0.9% Total Operating Income 7,021 6,968 0.8% Gross Contribution 3,691 3,782 -2.4% Gross Contribution Margin-(% of net sales) 52.4% 54.0% HR Cost 473 451 4.9% Advertisement Expenses 1044 962
Slide 28: 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 27