Zydus Wellness (ZWL) is one of the FMCG companies present in healthcare, nutrition & related products. The company has six brands i.e. Sugarfree, Complan, Glucon-D, Nycil, Everyuth & Nutrilite
It commands dominant market share in Sugar substitute (96%), Prickly heat powder (34.2%) & Glucose powder (60.4%) categories
The company has more than 850 distributors with direct reach of 0.6 million retail outlets. Its high gross margins at ~55% give it a leeway to spend ~13% of sales on advertisement to support new products
Zydus reported healthy results with 10.3% volume growth
Sales were up 16.6%YoY led by 10.3% volume growth & 6% price hikes
EBITDA was at Rs 148.1 crore, up 5.5% YoY, with margins at 21.3%
Consequent adjusted PAT was at Rs 139.9 crore, growth of 6.9%
Packaged Foods company Zydus Wellness announced Q2FY24 results:
1. Net Sales Performance:
For the second quarter ended September 30, 2023, Zydus Wellness reported consolidated net sales of Rs 438 crore.
2. Key Brand Performance:
Several key brands, including Glucon-D, Everyuth, Nycil, and Nutralite, recorded a strong performance during the quarter. These brands have consistently delivered positive results.
3. Market Leadership:
The Sugarfree brand maintained its leadership in its category with a market share of 96.1%. Glucon-D also continued to dominate the market with a market share of 60.0%. These brands have established themselves as market leaders.
4. Digital Engagement:
The company actively promoted Glucon-D's new variants of mango flavor and sachets through digital engagement with consumers. This strategy has helped in creating awareness and driving sales.
5. Volume Growth:
Complan, the company's health food drink brand, continued to register volume offtake growth ahead of the category. It has gained a market share of 4.4% as of September 2023. This indicates increased consumer preference for the brand.
6. Strong Performance in Personal Care:
In the personal care segment, Zydus Wellness brands Nycil and Everyuth outperformed their respective categories. Nycil maintained its number one position in the prickly heat powder category with a market share of 35.2% and registered double-digit growth. Everyuth Scrub and Everyuth Peel off also held their number one positions in their respective categories, displaying consistent consumer demand.
Market capitalization or market cap is determined by multiplying the current market price of a company’s shares with the total number of shares outstanding. As of Dec 07, 2023 03:46 PM, the market cap of Zydus Wellness Ltd stood at ₹ 9,958.09.