Zydus Wellness Limited, a prominent player in the wellness products sector, announced a mixed set of financial results for the second quarter ending September 2023. For those who do not know about Zydus Wellness, the company covers the full spectrum of activities from development and manufacturing to marketing and distribution in the health and wellness sector. Its product range comprises well-known brands such as Complan, Glucon-D, Sugar-Free, Nycil, Everyuth, and Nutralite.
In their Q2 FY2024, Zydus Wellness has witnessed marginal revenue growth but saw its profit taking a significant hit.
In the quarter under review, Zydus Wellness recorded a net sales figure of Rs 439.90 crore, marking a 2.43% increase from Rs 429.47 crore in the corresponding quarter of the previous year. However, despite the uptick in sales, the company’s net profit experienced a sharp decline of 30.34%, coming in at Rs 5.90 crore as compared to Rs 8.47 crore reported in September 2022.
The EBITDA for the company stood at Rs 20.90 crore, which is an increase of 18.68% from Rs 17.61 crore reported in September 2022, indicating an improvement in operational profitability.
However, the company’s earnings per share (EPS) suffered, decreasing to Rs 0.93 in September 2023 from Rs 1.33 in the same month the previous year.
Despite the decline in profitability, Zydus Wellness has continued to perform robustly in terms of brand presence and market share. The company’s well-known brands like Glucon-D, Everyuth, Nycil, and Nutralite saw a strong performance in the quarter. The Sugarfree brand maintained a commanding market share of 96.1%, while Glucon-D retained the top position with a 60% market share, further reinforced by new product variants and digital marketing campaigns.
Complan, another leading brand in the Zydus Wellness portfolio, also reported volume growth that surpassed the category average, holding a 4.4% market share in the Health Foods Drink Category.
The personal care segment, featuring brands like Nycil and Everyuth, also reported impressive market share gains. Nycil’s market share rose to 35.2% in the prickly heat powder category, and Everyuth Scrub and Peel Off continued to lead in their respective categories with market shares of 43.4% and 78.9%, respectively.
As of November 6, 2023, Zydus Wellness shares closed at Rs 1,524.60 on the NSE. The stock has given a return of 1.38% over the last six months, although it marked a decline of 10.94 over the past twelve months. The current PE ratio is 32.1 and marketcap is Rs. 9,698 Crore.
This pharma company’s resilient market share in key product categories coupled with a consistent focus on marketing and brand-building initiatives positions Zydus Wellness to potentially navigate through the challenging economic environment and foster long-term growth.
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