Zydus Wellness Limited · NSE:ZYDUSWELL
Zydus Wellness — Q3 FY2024-25 Earnings Presentation
30 slides from Zydus Wellness's earnings presentation, Feb 4, 2025
Slide 1: Cover letter to stock exchanges: Investor Presentation
February 4, 2025 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: Investor Presentation Dear Sir / Mad
Slide 2: Q3 FY 2024-25 Earnings Presentation
Q3 FY 2024-25 Earnings Presentation February 4, 2025
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 Operating environment- Overview Zydus Wellness: A leading Financial performance Consumer Wellness Company in India Business Highlights 3
Slide 5: Operating Environment – Overview, Financial Performance
Operating Environment – Overview & ZY.dUS Wellness Financial Performance
Slide 6: Consumption trend remains to be subdued for the industry
Consumption trend remains to be subdued for the industry Rural Consumption Consumption Rising Inflationary Pattern Pressure Steady growth in rural Smaller unit packs are growing Inflationary pressure consumption is being at a faster rate than larger impacting the consumption observed in both food an
Slide 7: Segment performance snapshot for Quarter 3 FY25
Segment performance snapshot for Quarter 3 FY25 Q3 FY 25 - Net Sales (INR Million) Food & Nutrition Personal Care 12.7% 4,508 4,001 Q3 FY 2023-24 Q3 FY 2024-25 Growth Y-o-Y 8.8% Growth Y-o-Y 50.3% 6
Slide 8: Segment performance snapshot for YTD December FY25
Segment performance snapshot for YTD December FY25 YTD FY 25 - Net Sales (INR Million) Food & Nutrition Personal Care 15.8% 17,806 15,372 Q3 FY 2023-24 Q3 FY 2024-25 Growth Y-o-Y 11.8% Growth Y-o-Y 39.2% 7
Slide 9: Key input rate trends towards recovery of Margins
Key input rate trends towards recovery of Margins Milk Edible oils* Dextrose Monohydrate -9.6% vs Q3 FY23 +28% vs Q3 FY23 +11% vs Q3 FY23 -0.9% vs Q3 FY24 +46% vs Q3 FY24 +4% vs Q3 FY24 -0. 8% vs Q2 FY25 +29% vs Q2 FY25 +5% vs Q2 FY25 Q3 FY 23 Q3 FY 24 Q2 FY 25 Q3 FY 25 Q3 FY 23 Q3 FY 24 Q2 FY 25 Q3
Slide 10: Sustained gross margin under inflationary pressures
Sustained gross margin under inflationary pressures Gross margin growth driven by strategic hedging, favourable product mix, and calibrated pricing Gross Margin % to Net Sales Y-o-Y Gap + 418 + 377 + 314 + 261 +2 + 92.6 + 231 bps 55.5% 54.4% 51.3% 49.0% 47.7% 47.5% 47.7% Q3 FY Q4 FY Q1 FY Q2 FY Q3 F
Slide 11: Financial highlights for the Q3 and YTD FY25
Financial highlights for the Q3 and YTD FY25 INR Million Q3 FY25 * Q3 FY24 Y-o-Y Growth % YTD FY25 * YTD FY24 Y-o-Y Growth % Net Sales 4,508 4,001 12.7% 17,806 15,372 15.8% Total Operating Income 4,619 4,032 14.6% 17,958 15,452 16.2% Gross Contribution 2,263 1,940 16.6% 9,294 7,618 22.0% Gross Contr
Slide 12: Business Highlights
ZY.dUS Business Highlights Wellness
Slide 13: Building sustainable business performance
Building sustainable business performance Building Driving the Winning in relevance Navigating category competitive to new age challenges growth market consumers 12
Slide 14: Driving the category growth
Driving the category growth Driving the prickly heat powder category penetration# MAT Nov'21 MAT Nov'22 MAT Nov'23 MAT Nov'24 NYCIL Prickly Heat Powder Nycil contributed 51% to increase in category penetration Driving continuous volume growth* Volume Market share 35.5 30.7 *As per MAT Dec 2024 Niels
Slide 15: Driving the category growth
Driving the category growth Driving market share Recruiting new consumers for the Glucose powder category# Widening the portfolio basket Strong Brand Positioning and Seasonality Propel FY 2025 Consumption Growth Driving to whooping double digit growth at 5-year CAGR^ Glucon-D contributed 79.5%
Slide 16: Winning in Competitive Market
Winning in Competitive Market Consistent strong volume Nutralite Professional Range: Entered Franchise continues to grow growth into Processed Cheese Category Penetration# continues to grow for 3 successive Widening the portfolio basket years Double digit growth at 4-year CAGR^ with consistent vo
Slide 17: Building relevance to new age consumers
Building relevance to new age consumers Efforts to leverage changing shopper behavior and target new age consumers 1 Nutralite Chef Launch (AI Bot) 2 E-commerce exclusive packs & 3 Organized trade salience^ promotions 23% 21% 20% 16% 14% EY Tan Removal 400g Powder SF D’lite Chocolate range Serum Con
Slide 18: Navigating Challenges
Navigating Challenges Offtake continues to get stronger Sugar Free has maintained its number one position with a market share of 95.4%* Sugar Free Green continues double-digit growth trajectory since last 15 quarters In Q2 FY 25, the Company extended Sugarfree D’lite cookies in the domestic marke
Slide 19: Zydus Wellness acquired 100% stake in Naturell (India) Private Limited
Zydus Wellness acquired 100% stake in Naturell (India) Private Limited Acquisition Updates New Launches During the quarter, the Company has completed acquiring 100% equity share capital of Naturell (India) private limited (“NIPL”) NIPL is engaged in the business of manufacturing, research and de
Slide 20: Continuing to strengthen brand leadership
Continuing to strengthen brand leadership Glucose Nutrition Sugar Prickly heat *Facial Category Scrub Peel-off Powder Drink substitute powder cleansing Mkt. Rank 1 5 1 1 5 1 1 Mkt. Share % 58.9 4.1 95.4 33.9 7.2 47.3 77.8 MS change YoY -128.9 -18.5 -0.6 -78.8 +96.6 +418.0 +106.7 (in bps) Market shar
Slide 21: Campaigns and initiatives
Campaigns and initiatives TVC 20
Slide 22: Campaigns and initiatives
Campaigns and initiatives Digital Awareness Campaigns TVC with Celebrity Madhuri Dixit and Sneha X` Social Media Amplification 21
Slide 23: Campaigns and initiatives
Campaigns and initiatives Driving consumption of Sugar Free Green Print Media: Sugar Free Gold + ` D’Lite Cookies - New DVC Launched & Social Media Promotions Brand Awareness 22
Slide 24: Campaigns and initiatives
Campaigns and initiatives TVC with Kartik Aaryan Events / Activations Topical Campaigns 23
Slide 25: Continued momentum in International business
Continued momentum in International business.. UAE, Bahrain, Qatar, Myanmar, Malaysia, Taiwan, Kuwait, Kingdom of Saudi Pakistan, Sri Lanka, Bangladesh, Sugar Free franchise and Complan Arabia, Oman, Lebanon Nepal, Bhutan, Maldives, Hong Kong constituting ~90% of the overall business Despite the
Slide 26: Campaigns and initiatives in international markets
Campaigns and initiatives in international markets Digital Advertisements 25
Slide 27: Awards and Recognitions
Awards and Recognitions Celebrating Manufacturing Excellence • Our Ahmedabad & Aligarh sites were conferred with the prestigious “imexi Distinguished Prize” (Gold Medallion Zone) • Our Sikkim Unit raised the bar by winning the “Distinguished Plus Prize” 9th CII 5S Competition – Special Recognition I
Slide 28: Awards and Recognitions
Awards and Recognitions Certified as Great Place To Work for third consecutive SugarFree D’lite Chocolates Earned the prestigious CMPL year Valentine’s Day Campaign won Expo 2024 Propel Award for our 16% Overall Growth in Trust Index (2022-24) Silver at E4M Maddies for ‘Most innovative product,
Slide 29: Awards and Recognitions
Awards and Recognitions Nutrition & Wellness Prohealth Convergence 2024: Celebrated RiteBite Max Protein as the Protein Snack of the Year at the 9th Grand Edition, highlighting its excellence in nutrition and wellness. Forttuna Global Excellence Awards 2024: RiteBite Max Protein was awarded Protein
Slide 30: 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