Zydus Wellness Limited · NSE:ZYDUSWELL
Zydus Wellness — Q2 FY2025 Earnings Presentation
31 slides from Zydus Wellness's earnings presentation, Nov 11, 2024
Slide 1: Exchange cover letter: Investor Presentation
November 11, 2024 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 / Ma
Slide 2: Q2 FY 2024-25 Earnings Presentation
Q2 FY 2024-25 Earnings Presentation November 11, 2024
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: Financial performance A leading Consumer Wellness Business Highlights Company in India The Road Ahead 3
Slide 5: Operating Environment – Overview
Operating Environment – Overview & ZY.dUS Wellness Financial Performance
Slide 6: Achieving Key Milestones and Setting Positive Trend
Achieving Key Milestones and Setting Positive Trend Moderate demand uptick Mixed trend in Commodities • Urban demand had been under pressure, the • Sharp spike in few of the commodities prices rural demand continued its gradual recovery • High import duty and inflationary pressure led to • Organized
Slide 7: Key input rate trends towards recovery of Margins
Key input rate trends towards recovery of Margins Milk Edible oils* Dextrose Monohydrate -3.4% vs Q2 FY23 +10.8% vs Q2 FY23 -13.8% vs Q2 FY23 -3.9% vs Q2 FY24 +0% vs Q2 FY24 +10.6% vs Q2 FY24 -1.1% vs Q1 FY25 -1.6% vs Q1 FY25 +7.9% vs Q1 FY25 Q2 FY 23 Q2 FY 24 Q1 FY 25 Q2 FY 25 Q2 FY 23 Q2 FY 24 Q1
Slide 8: Gross margin continued its upward trajectory
Gross margin continued its upward trajectory Effective hedging strategy, Favourable product mix and calibrated price increase helped drive gross margin expansion Gross Margin % to Net Sales Y-o-Y Gap + 198 + 418 + 377 + 314 + 261 + 306 bps 54.4% 55.5% 52.6% 49.5% 47.7% 47.5% 44.9% Q2 FY Q3 FY Q4 FY
Slide 9: Segment performance snapshot for Q2 and H1 FY25
Segment performance snapshot for Q2 and H1 FY25 Q2 FY 25 - Net Sales (INR Million) Food & Nutrition Personal Care 12.1% 4,907 4,379 Growth Y-o-Y 9.7% Growth Y-o-Y 26.0% Q2 FY 2023-24 Q2 FY 2024-25 H1 FY 25 - Net Sales (INR Million) Food & Nutrition Personal Care 16.9% 13,298 11,371 Growth Y-o-Y 12.9
Slide 10: Financial highlight for the quarter and half year ended September 30, 2024
Financial highlight for the quarter and half year ended September 30, 2024 INR Million Q2 FY25 Q2 FY24 Y-o-Y Growth % YTD FY25 YTD FY24 Y-o-Y Growth % Net Sales 4,907 4,379 12.1% 13,298 11,371 16.9% Total Operating Income 4,929 4,399 12.0% 13,339 11,420 16.8% Gross Contribution 2,354 1,987 18.5% 7,0
Slide 11: Business Highlights
ZY.dUS Business Highlights Wellness
Slide 12: Building sustainable business performance
Building sustainable business performance Driving the Winning in category competitive growth market Building Navigating relevance challenges to new age consumers 11
Slide 13: Driving the category growth
Driving the category growth Driving the prickly heat powder category penetration# MAT Aug'21 MAT Aug'22 MAT Aug'23 MAT Aug'24 NYCIL Prickly Heat Powder Driving continuous volume growth* Volume Market share 38.1 36.4 *As per MAT Sep 2024 Nielsen report MAT Sep'20 MAT Sep'24 #As per MAT Aug 24 Kantar
Slide 14: Driving the category growth
Driving the category growth Driving market share Widening the portfolio basket Driving to double digit growth at 5-year CAGR^ Superior product offering along with strong campaigns focused on recruiting new users Scrub and peel off continues to strengthen its leadership with growth in volume mark
Slide 15: Driving the category growth
Driving the category growth Recruiting new consumers for the Glucose powder category# MAT Aug'21 MAT Aug'22 MAT Aug'23 MAT Aug'24 Glucon D Glucose Powder Consumption uptick in FY 2025 due to positive impact of the seasonality and brand building efforts #As per MAT Aug 24 Kantar World Panel Household
Slide 16: Winning in Competitive Market
Winning in Competitive Market Complan’s foray into Adults Nutrition space delivering high Franchise continues to grow protein with pre & probiotics to support Gut-Muscle axis with the new launch of Viemax Penetration# continues to grow for 3 successive years MAT Aug'21 MAT Aug'22 MAT Aug'23 MAT Aug
Slide 17: Winning in Competitive Market
Winning in Competitive Market Professional Nutralite Range Consistent strong volume growth Launched Nutralite Activ Plant Extension: Cheese Analogue & Based Spread Rich Fat Spread Widening the portfolio basket Double digit growth at 5-year CAGR^ with consistent volume growth driven by a wide portf
Slide 18: Building relevance to new age consumers
Building relevance to new age consumers Efforts to leverage changing shopper behavior and target new age consumers Channel specific innovative E-commerce exclusive packs & Online salience^ 1 marketing initiatives 2 3 promotions 12.5% 10.1% 8.3% 7.4% 225g Powder 400g Powder SF D’lite Chocolate range
Slide 19: Navigating Challenges
Navigating Challenges Offtake continues to get stronger Sugar Free D’Lite Cookies Sugar Free has maintained its number one position with a market share of 93.9%* Sugar Free Green continues double-digit growth trajectory since last 14 quarters Extension of Sugarfree D’lite cookies in domestic mark
Slide 20: Continuing to strengthen brand leadership
Continuing to strengthen brand leadership Glucose Nutrition Sugar Blended Prickly heat *Facial Fat Category Scrub Peel-off Dairy Powder Drink substitute Sugar powder cleansing spread Mkt. Rank 1 5 1 NA 1 5 1 1 1# NA Mkt. Share % 59.4 4.1 93.9 NA 34.3 6.9 46.0 77.9 NA NA MS change YoY -81.1 ` -22.9 -
Slide 21: Campaigns and initiatives
Campaigns and initiatives New TVC Mobile Marketing Digital Media Via Audio Fingerprinting Technology 20
Slide 22: Campaigns and initiatives
Campaigns and initiatives TVC with Celebrity Madhuri Dixit and Sneha Print Media with Celebrity Sneha 21
Slide 23: Campaigns and initiatives
Campaigns and initiatives Festive Campaigns Consumer Offer initiatives Social media engagement 22
Slide 24: Campaigns and initiatives
Campaigns and initiatives Sugar Free D’lite Rakshabandhan Sugar Free Gold + Building culinary for Sugar Free with Driving consumption of Sugar Free Sanjeev Kapoor Green 23
Slide 25: Campaigns and initiatives
Campaigns and initiatives TVC Awareness programs 24
Slide 26: Awards and Recognitions
Awards and Recognitions Supply Chain Champion Legal Team of the year HR Excellency Award 25
Slide 27: Awards and Recognitions
Awards and Recognitions Marketing Accolades Marketing (Glucon-D) 2x 1x Use of E-sports Best Use of Tech and Gamification Marketing Campaign – SugarFree & Complan 26
Slide 28: Zydus Wellness to acquire 100% stake in Naturell (India) Private Limited
Zydus Wellness to acquire 100% stake in Naturell (India) Private Limited, a strategic leap into healthy consumer snacking space • On October 30, 2024, the Company announces entering into a definitive agreement to acquire Naturell (India) Private Limited (“NIPL”), a leading healthy snacking company w
Slide 29: Continued momentum in International business
Continued momentum in International business.. UAE, Bahrain, Qatar, Kuwait, Myanmar, Malaysia, Taiwan, Kingdom of Saudi Arabia, Pakistan, Sri Lanka, Bangladesh, Oman, Lebanon Nepal, Bhutan, Maldives, Hong Sugar Free franchise and Complan Kong constituting ~90% of the overall business Nigeria bus
Slide 30: Watch the film
Watch the film : http://www.youtube.com/watch?v=Q4sZ9gWm9Uk&feature=youtu.be 29
Slide 31: 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