Zydus Wellness Limited · NSE:ZYDUSWELL
Zydus Wellness — Q2 FY23 Earnings Presentation
29 slides from Zydus Wellness's earnings presentation, Nov 10, 2022
Slide 1: Exchange filing cover letter for investor presentation
November 10, 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 / Madam, Pleas
Slide 2: Q2 FY23 Earnings Presentation
Q2 FY23 Earnings Presentation November 10, 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 Steady revenue growth in challenging times Zydus Wellness: Financial performance – Q2FY23 A leading Consumer Wellness Business and Brand performance Company in India The Road Ahead 3
Slide 5: Steady Revenue Growth in challenging times
Steady Revenue Growth in challenging times Lower Volume growth Zydus Wellness outperformed Volume growth was impacted the sector 13.1% Weak Demand Pickup in Rural Demand has been slower than urban areas Constrained 8.0% Consumer Budget sentiments have Rural consumers gradually started to down tradin
Slide 6: Price Inflation - Partly priced in, remaining work-in-progress
Price Inflation - Partly priced in, remaining work-in-progress Milk RPO* DMH* +35% vs Q2 FY20 +8% vs Q2 FY20 +96% vs Q2 FY20 +25% vs Q2 FY22 +17% vs Q2 FY22 -6% vs Q2 FY22 Jul to Sep 19 Jul to Sep 21 Jul to Sep 22 Jul to Sep 19 Jul to Sep 21 Jul to Sep 22 Jul to Sep 19 Jul to Sep 21 Jul to Sep 22 As
Slide 7: Q2 FY23 - Financial Performance
Q2 FY23 - Financial Performance ❑ Registered steady net sales growth of +12.3 percent Quarterly Summary on a consolidated basis (volume growth ~5%), supported by continued marketing efforts across INR Million Q2 FY22 Q2 FY23 YoY 3-Yr CAGR brands Net Sales 3,801 4,268 +12.3% +10.4% Income from operat
Slide 8: 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 • Surpassed 60%* market share milestone for the first time in
Slide 9: Strengthening competitive edge with gain in market share across categories
Strengthening competitive edge with gain in Market share across categories that Zydus leads Prickly Glucose Sugar Blended *Facial Fat Category HFD heat Scrub Peel-off Dairy Powder substitute Sugar cleansing spread powder Mkt. Rank 1 5 1 NA 1 5 1 1 1# NA Mkt. Share % 60.0 4.6 95.6 NA 35.0 6.5 41.8 75
Slide 10: Quarterly Brand Performance– HFD, Glucose Powder
Quarterly Brand Performance– HFD, Glucose Powder Strengthening core through Relaunch of the Brand Strengthen “Energy” credential with new launches ❖ HFD Category continued to witness slow-down and similar trend was ❖ Registered a strong double-digit growth, leveraging 2nd summer opportunity reflecte
Slide 11: Quarterly Brand Performance– Nutralite, SugarLite and SugarFree
Quarterly Brand Performance– Nutralite, SugarLite and SugarFree Building ‘Dairy + Spread’ portfolio Replacing sugar in all forms of consumptions ❖ Continued to build momentum in the overall business and delivered strong ❖ Sweeteners portfolio registered muted growth due to higher base effect, double
Slide 12: Quarterly Brand Performance– Everyuth and Glucose Powder
Quarterly Brand Performance– Everyuth and Glucose Powder Growing Faster than Market A Leader getting stronger ❖ Brand is at No 5 position with market share of 6.5%* for overall facial ❖ Registered strong double-digit sales growth, on the back of prolonged cleansing segment monsoon ❖ Registered anoth
Slide 13: Awards & Recognitions (1/2)
Awards & Recognitions (1/2) Awarded at ET Brand Awarded at E4M health marcom Equity SPOTT Award Bronze - Best social media campaign Small Budget Campaign on social Silver - Best integrated campaign media platforms 12
Slide 14: Awards & Recognitions (2/2)
Awards & Recognitions (2/2) Silver Award at the outdoor Awarded at 14th Express Logistics & supply chain solutions Leadership awards a advertising awards 2022 UP-van drive activation Excellence in Global supply chain solutions 13
Slide 15: Campaigns during the quarter (1/7)
Campaigns during the quarter (1/7) Body Lotions available on Apps Scrub and Peel Off 14
Slide 16: Campaigns during the quarter (2/7)
Campaigns during the quarter (2/7) To make people relive a fond memory with their mother by bringing it to life as a “Customized hand-drawn caricature” drawn by caricature artists in real-time #MyEnergyMaaEnergy 15
Slide 17: Campaigns during the quarter (3/7)
Campaigns during the quarter (3/7) New Recipe video by Shilpa Shetty 16
Slide 18: Campaigns during the quarter (4/7)
Campaigns during the quarter (4/7) Social Media promotions on Festivals Choco spread and Mayo promotion on Choco spread and World Emoji Day Mayo promotion on Parents Day 17
Slide 19: Campaigns during the quarter (5/7)
Campaigns during the quarter (5/7) Nutralite Ghee & Butter promotion during festive seasons: Navratri & Dusshera 18
Slide 20: Campaigns during the quarter (6/7)
Campaigns during the quarter (6/7) Launch of Royale Chocolate Pouch “Pack Pulto, Fark Dekho” Superiority campaign across TV and Digital Offers on key variants: Royal Chocolate New Creamy Classic and Kesar Badam pouch launched in West Bengal 19
Slide 21: Campaigns during the quarter (7/7)
Campaigns during the quarter (7/7) 20
Slide 22: International Business – Presence in more than 25 countries
International Business – Presence in more than 25 countries UAE, Bahrain, Qatar, Kuwait, Myanmar, Malaysia, Taiwan, ❖ Sugar Free franchise and Complan Kingdom of Saudi Arabia, Pakistan, Sri Lanka, Bangladesh, Oman, Lebanon constitute 93% of the overall business Nepal, Bhutan, Maldives, Hong Kong ❖ T
Slide 23: 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 24: 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 to 3Mn+ reach and 1 Mn direct Digitizing the whole value chain – Proactively look for Bolt-on cov
Slide 25: Building Route to market to adapt shifting channel mix
Building Route to market to adapt shifting channel mix • Implementing Integrated Business • Channel mix shift towards • Direct reach ~6 lakh stores Planning (IBP) tool to automate MT+Ecom from 14% (FY 21) to 18% expansion across sub channels the demand planning, supply (FY 22). Potential to increase
Slide 26: Multiple levers to build leaner and efficient organization – Transformation 2.0
Multiple levers to build leaner and efficient organization – Transformation 2.0 Building an Efficient Supply Chain Reorganizing Manufacturing Operations Revisited manufacturing footprint focusing on redistributing the Digitalization for better demand and manufacturing of same product in different ge
Slide 27: Financials Summary – Q2FY23
Financials Summary – Q2FY23 INR Million 2Q FY22 2Q FY23 YoY Growth 3Y CAGR Net Sales 38,013 42,677 12.3% 10.4% Total Operating Income 38,365 42,947 11.9% 9.6% Gross Contribution 18,497 18,598 0.5% 0.2% HR Cost 4,230 4,363 3.1% 4.4% Advertisement Expenses 4,749 5,169 8.8% -1.6% Other Expenses 6,464 7
Slide 28: Financials Summary - H1FY23
Financials Summary - H1FY23 INR Million 1H FY22 1H FY23 YoY Growth 3Y CAGR Net Sales 96,834 111,975 15.6% 6.6% Total Operating Income 98,123 112,623 14.8% 6.0% Gross Contribution 51,601 56,413 9.3% 0.7% HR Cost 8,529 8,872 4.0% 5.0% Advertisement Expenses 11,674 14,786 26.7% 0.2% Other Expenses 14,3
Slide 29: THANK YOU
THANK YOU Zydus Wellness Limited Zydus Wellness, Oct 21, 2022 28