Zydus Wellness Limited · NSE:ZYDUSWELL
Zydus Wellness — Q3 FY2022 Earnings Presentation
29 slides from Zydus Wellness's earnings presentation, Feb 2, 2022
Slide 1: Zydus Wellness Investor Presentation cover letter
ZY.dUS Wellness _ _ _ _ _ _ _ _ _ _ __ _ February 2, 2022 listing Department Code: 531335 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: Invest
Slide 2: Investor Update
Investor Update February 2022 1
Slide 3: Zydus Wellness: on the path to become a leading Consumer Wellness Company in India
Zydus Wellness : on the path to become a leading Consumer Wellness Company in India Overview of business in last 3 years post acquisition The Road ahead Quarterly updates and performance summary – Q3 FY 22
Slide 4: Overview of business in last 3 years post acquisition
Overview of business in last 3 years post acquisition
Slide 5: Building a future ready, lean, consumer centric and profitable organization
We are building a future ready, lean, consumer centric and profitable organization with a market leading portfolio of brands Our guiding principles Consumers at the centre of our all our actions Grow new emergent categories with differentiated product propositions Philosophy of building products tha
Slide 6: 3 Years since Acquisition of Heinz India
3 Years since Acquisition of Heinz India Increased Penetration and Innovations - Key Strategic Pillars of our Growth Strategy Strengthen “Energy” credential Strengthening core through with wider use cases Relaunch of the Brand Successful Relaunch with a Bollywood 1 lakh stores added Brand Ambass
Slide 7: Complan: Relaunch and distribution expansion
Complan : Relaunch and distribution expansion to pave the way for higher adoption • Relaunch with better taste and enhanced claims will help better consumer acceptance • Distribution up by more than 1 lakh since acquisition • Organized trade building further momentum Strengthening “Energy” credentia
Slide 8: Building the Sweeteners Portfolio and Personal Care space
Building the Sweeteners Portfolio • Sweeteners portfolio is expanding penetration and growing at double digits over last 3 years Increasing volume share and Innovations to build Personal Care space 42.19 Innovations 37.30 36.79 34.80 • Both Everyuth and Nycil have EY MS Vol : Scrub grown ahead of ca
Slide 9: Nutralite: Unlocking brand potential
Nutralite : Unlocking brand potential Earlier 2021 – Multi-category Portfolio • Transforming Nutralite brand to broader category play • Convergence of Sampriti Ghee with Nutralite and launch of Nutralite Doodhshakti Ghee and Probiotic Butter Spread Fat Spread • Created new identity for the Food serv
Slide 10: Building future ready Route to Market
Building future ready Route to Market – path to sustainable growth Organized Trade : Fast forward Shifting channel mix in India Business Changing shopper behavior : potential to increase it’s share to 25% in next 3-4 years 67% 60% Traditional trade : Building depth and width 21% 24% 11% 11% Direct r
Slide 11: Accelerating International Business to Cross Rs 100 Cr next year
Accelerating International Business : to Cross Rs 100 Cr next year CY 2018 (Pre Acquisition) CY 2021 • Sugar Free franchise and Complan constitute 93% of the overall business 7X growth in revenue • Top 5 markets constitute ~80% of the business 15 to 25 • 3P manufacturing in countries GCC and New Zea
Slide 12: Supply chain transformation for agile and efficient response
Supply chain transformation for agile and efficient response to volatile environment Use of digitalization for better demand planning Implementation of Integrated business planning (IBP) tool Building capabilities Unification of 45 Ambient Dairy Development camp to manage ambient & • January 20 Cold
Slide 13: Reorganizing Manufacturing Operations for future capacity
Reorganizing Manufacturing Operations for future capacity and capability Re-networking Manufacturing footprint Distributed manufacturing for business continuity Glucon-D at 3 facilities Sugarlite/Complan at 2 facilities Reduced cost of production Best in class processes to improve efficiencies Accol
Slide 14: People – Building lean and agile organization
People – Building lean and agile organization Optimized Organisation Structure One Zydus Wellness with harmonised 12.0% 10.2% Policies & processes 10.0% 8.3% 8.0% 6.0% 4.0% 2.0% 0.0% HR Cost (% to Inc. from operations) Focus on role clarity and zero role redundancy Mar 2019 Dec 2021 (As per trailing
Slide 15: Challenges faced in our journey
Challenges faced in our journey Global pandemic dented sales of summer brands for two consecutive year Normalization of situation post third covid wave impacting ~ 8 to 10 % of Annual sales before summer season would give the business clear pathway to drive growth Inflation in key raw material and p
Slide 16: Shareholders Value Creation over 3 years
Shareholders Value Creation over 3 years Healthy CAGR over 3 years despite the pandemic impacting summer season brands for two consecutive years and gross margin pressure due to inflationary price increases in key raw materials and packing materials Turnaround from 3,486 2 Calendar Year CAGR – 8.8%
Slide 17: The Road Ahead
The Road Ahead
Slide 18: Key Pillars to propel strong growth ahead
Key Pillars to propel strong growth ahead Category Building Leading Route to Digital backbone to Inorganic play for gap Market decision making filling • Volume led focus • Enhanced distribution infra – 3 • Digitizing the whole value • Proactively look for Bolt-on Mn plus reach (with 1 Mn chain – Sou
Slide 19: Building a digital footprint for future
Building a digital footprint for future SAP S4 HANA, DMS, SFA Real time aggregation and integration of data Supply Chain – Pando TMS, Vendor Invoice Management System, SAP IBP, ARIBA Multiple processes across Unified Analytics Engine organization being digitized Multi-pronged AI based analytics solu
Slide 20: Strengthening product innovation capabilities through investment in R&D
Strengthening product innovation capabilities through investment in R&D Tie ups with top academic and research institutions in India and abroad Team of Post Docs, PHD’s and technology experts with global experience Long term clinical and pre-clinical trials for claim substantiation - publication in
Slide 21: Quarterly updates and Performance Q3 – FY22
Quarterly updates and Performance Q3 – FY 22
Slide 22: Brands Market Share update
Brands Market Share update Mkt Rank -1 Mkt Rank -4 Mkt Rank -1 Mkt Rank -1 Mkt Share – 58.1% Mkt Share – 5.2% Mkt Share – 96.0% Mkt Share – 34.0% Everyuth Scrub Nutralite Butter Mkt Rank -1 Substitute Mkt share – 39.2% Mkt Rank –N.A. Everyuth Peel off Nutralite Mkt Rank -5 * Mkt Rank -1 Doodhshakti
Slide 23: Brands campaigns during the Quarter
Brands campaigns during the Quarter All India mega print campaign on 1st Jan 22 New Year Resolution Digital Campaign “Sugar Badlo, Health Badlo” TVC Campaign on Air
Slide 24: Brands campaigns during the Quarter
Brands campaigns during the Quarter Everyuth Body lotion media campaign and influencer campaign Complan re-launch supported with new TVC Choco Spread TV Burst, Digital Campaign Recipe association with celebrity Shilpa Shetty, Chef Sanjeev Kapoor for NUTRALITE DoodhShakti
Slide 25: Quarterly Performance – Q3 FY22
Quarterly Performance – Q3 FY 22 • YoY Gr • YoY Gr • YoY Gr • YoY Gr Net 2.3 % (34.8) % 1205.7 % 1239.1 % EBIDTA PBT* PAT* Sales • 2 Year CAGR • 2 Year CAGR • 2 Year CAGR • 2 Year CAGR 8.7% (7.0) % 104.0% 134.4% Net sales is growing at healthy CAGR of 8.7% over 2 years, despite pandemic induced setb
Slide 26: Year to Date Performance – Apr 21 to Dec 21 – FY22
Year to Date Performance – Apr 21 to Dec 21- FY 22 • YoY Gr • YoY Gr • YoY Gr • YoY Gr Net 8.0 % 2.1 % 953.9 % 1319.2 % EBIDTA PBT* PAT* Sales • 2 Year CAGR • 2 Year CAGR • 2 Year CAGR • 2 Year CAGR 4.1% (3.1) % 70.9% 55.5% Net sales is growing at 8.0% Y-o-Y , mainly due to loss of sales in Glucon-D
Slide 27: Summary Financials Q3 FY22 & 9 months FY22
Summary Financials Q3 - FY 22 & 9 months - FY 22 INR in Million Growth % 2 Year 9 Months 9 Months 9 Months Growth % 2 Year Particulars Q3 FY 22 Q3 FY 21 Q3 FY 20 Vs. FY21 CAGR FY 22 FY 21 FY 20 Vs. FY21 CAGR Net Sales 3,849 3,764 3,257 2.3% 8.7% 13,533 12,529 12,494 8.0% 4.1% Total Operating Income
Slide 28: Annexure 1
Annexure 1 INR in Million Net Sales CY 19 CY 20 CY 21 CAGR over 2 CY January to March 4,013 4,848 6,008 April to December 12,494 12,529 13,533 January to December 16,507 17,377 19,540 8.8% EBIDTA January to March 865 1,046 1,454 April to December 2,165 1,990 2,033 January to December 3,030 3,036 3,4
Slide 29: Thank You
THANK YOU