Zydus Wellness Limited · NSE:ZYDUSWELL
Zydus Wellness — Q4 FY24 Earnings Presentation
34 slides from Zydus Wellness's earnings presentation, May 14, 2024
Slide 1: Q4 FY24 Earnings Presentation
Q4 FY24 Earnings Presentation May 14, 2024
Slide 2: 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 3: Agenda
Agenda Operating environment- Overview Zydus Wellness: Financial performance A leading Consumer Wellness Business Highlights Company in India The Road Ahead 3
Slide 4: Operating Environment – Overview & Financial Performance
Operating Environment – Overview & Financial Performance
Slide 5: Gradual demand progression in select consumption spaces
Gradual demand progression in select consumption spaces Gradual demand uptick Mixed trend in Commodities • Demand trend shows a gradual progression in • Commodity rates on a rising trend sequentially for selected consumption spaces some key inputs while for others they continue to decline • Rural de
Slide 6: Key input rate trends towards recovery of Gross Margins
Key input rate trends towards recovery of Gross Margins Milk Edible oils* DMH* +3.9% vs Q4 FY22 +17% vs Q4 FY22 -33% vs Q4 FY22 -11.6% vs Q4 FY23 +3% vs Q4 FY23 -11% vs Q4 FY23 -4.3% vs Q3 FY24 +1% vs Q3 FY24 -0.4% vs Q3 FY24 Q4 FY22 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY22 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY22 Q4
Slide 7: Gross margin recovery with right actions
Gross margin recovery with right actions… Continuous efforts to improve gross margins with calibrated price increases across portfolio Efficient hedging strategy for key inputs Gross Margin % to Net Sales Y-o-Y + 10 - 165 + 198 + 418 + 377 + 193 Gap 54.4% bps 50.6% 52.4% 50.8% 47.7% 48.9% 44.9% Q4FY
Slide 8: Segment performance snapshot
Segment performance snapshot Food & Nutrition Personal Care Q4 FY 24 - Net Sales (INR Million) 9.6% 7,780 7,099 Growth Y-o-Y 6.0% Growth Y-o-Y 23.0% Q4FY23 Q4FY24 FY 24 - Net Sales (INR Million) Food & Nutrition Personal Care 22,426 23,152 3.2% Growth Y-o-Y 0.4% Growth Y-o-Y 17.0% FY23 FY24 8
Slide 9: Financial highlights for the Quarter and Financial year
Financial highlights for the Quarter and Financial year Q4 FY24 FY24 INR Million YoY Growth % INR Million YoY Growth % Net Sales 7,780 9.6% 23,152 3.2% Total Income from Operations 7,827 9.8% 23,279 3.2% Gross Margins 4,277 18.1% 11,895 7.3% Gross Margins (% to Net Sales) 54.4% +377 bps y-o-y 50.8%
Slide 10: Business Highlights
Business Highlights was.
Slide 11: 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 • ~60% market share in the category concentration and enhance
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 12
Slide 13: Driving the category growth
Driving the category growth Driving the prickly heat powder category penetration# MAT Feb'21 MAT Feb'22 MAT Feb'23 MAT Feb'24 PHP NYCIL Driving continuous volume growth* Volume Market share 36.5 32.7 MAT Mar'20 MAT Mar'24 *As per MAT March 2024 Nielsen report #As per MAT February 24 Kantar World Pan
Slide 14: Driving the category growth
Driving the category growth Recruiting new consumers for the Glucose powder Launched Glucon-D Activors – category# An Electrolyte Engery Drink for on the go consumption MAT Feb'21 MAT Feb'22 MAT Feb'23 MAT Feb'24 Glucon D Glucose Powder Consumption dropped in FY 2024 due to poor seasonality #As per
Slide 15: Driving the category growth
Driving the category growth Driving market share ❖Widening the portfolio basket ❖Driving double digit growth at 4 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 market
Slide 16: Winning in Competitive Market
Winning in Competitive Market Franchise continues to grow ❖Penetration# continues to grow for 3 successive years MAT Feb'21 MAT Feb'22 MAT Feb'23 MAT Feb'24 ❖Volume offtakes* continue to grow ahead of the category ❖Growth driven by stronger campaign with 360-degree activation *As per MAT March 2024
Slide 17: Winning in Competitive Market
Winning in Competitive Market Consistent strong volume growth ❖Widening the portfolio basket ❖Double digit growth at 4 year CAGR^ with consistent volume growth driven by a wide portfolio and supported by focused B2B and B2C teams ❖Continued to support the brand with digital media, e-com channel acti
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 fruitful Channel specific innovative E-commerce exclusive packs & E-commerce saliency^ 1 marketing initiatives 2 3 promotions 6.2% 5.2% 4.6% 3.3% 1.6% Q4 FY20 Q4 FY21 Q4 FY22 Q4 FY23 Q4
Slide 19: Navigating Challenges
Navigating Challenges Offtake continues to get stronger ❖Sugar Free has maintained its number one position with a market share of 95.9%* ❖Driven by new campaign and distribution expansion, Sugar Free Green continues double-digit growth^ since last 12 quarters. Contribution to Sweeteners business has
Slide 20: Continuing to strengthen brand leadership
Continuing to strengthen brand leadership Glucose Sugar Blended Prickly heat *Facial Fat Category HFD Scrub Peel-off Dairy Powder substitute Sugar powder cleansing spread Mkt. Rank 1 5 1 NA 1 5 1 1 1# NA Mkt. Share % 59.5 4.3 95.9 NA 35.0 6.5 45.6 80.2 NA NA MS change YoY -61 ` -15 -17 NA -41 +25 +3
Slide 21: Campaigns and initiatives
Campaigns and initiatives Sampling drive and regional promotions to drive consumption 21
Slide 22: Campaigns and initiatives
Campaigns and initiatives New TVC with Celebrity Madhuri Dixit and Sneha Attractive consumer offers for key packs 22
Slide 23: Campaigns and initiatives
Campaigns and initiatives Driving consumption of Sugar Free Green Digital Campaign “New Year No Sugar” Sugar Free D’lite Valentine Day’s promotions 23
Slide 24: Campaigns and initiatives
Campaigns and initiatives Digital initiatives and Print campaign to drive Nutralite dairy and spread range 24
Slide 25: Awards and Recognitions
Awards and Recognitions HR Team won 1st prize in the Private Nycil won BRONZE for Sugar Free D’lite has won “Product of Sector Manufacturing category at “Best Campaign in Personal Care” the Year Gulf 2024” Award in the 33rd National Awards for Innovative category at DIGIES Awards 2024 Sugar Free Sna
Slide 26: 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 bu
Slide 27: Environmental, Social and Governance
Environmental, Social and Governance Improved ESG Score and ranking in Corporate Sustainability Assessment by S&P Global (Dow Jones Sustainability World Index) Y-o-Y ESG FY 2023 increase Total Score 58 53% Environment 49 75% Social 63 50% Governance 63 47% 27
Slide 28: The Road Ahead
The Road Ahead was.
Slide 29: 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 30: 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 making filling Recruit new consumers infra and direct coverage Digitizing the whole value Proactively look for Bolt- over next 3 years chain
Slide 31: Traditional Trade capabilities in S&D
Building Route to market to adapt shifting channel mix • Direct reach ~6 lakhs stores • Channel mix shift towards expansion across sub channels, • Implementation underway for MT+Ecom from 17.5% (FY22) to plan to take it to ~7 lakhs in the dashboarding of key KPI’s as Building future ready 20.5% (FY2
Slide 32: Appendix
: Zydus Appendix Wéliness
Slide 33: Financial Summary – P&L
Financial Summary – P&L INR Million Q4 FY24 Q4 FY23 YoY Gr. % YTD FY24 YTD FY23 YoY Gr. % Net Sales 7,780 7,099 9.6% 23,152 22,426 3.2% Total Operating Income 7,827 7,130 9.8% 23,279 22,548 3.2% Gross Contribution 4,277 3,623 18.1% 11,895 11,088 7.3% Gross Contribution Margin-(% of net sales) 54.4%
Slide 34: 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