“On the onset of the first quarter of the financial year 2023-’24, the business has started with a mixed bag. On the revenue front, while the net sales growth is about 1%, the portfolio without Glucon-D has witnessed closer to double-digit growth, supported by volume growth of 4.5%. Similarly, as explained in the last quarter, we continue to see improvement in gross margins for our non-milk based portfolio in excess of 100 basis points over the same period last year. We are taking appropriate price increases to address the milk inflation in the coming quarters.”
– Tarun Arora, CEO
Stock Data
| Ticker | ZYDUSWELL |
| Industry | Fitness |
| Exchange | NSE |
Share Price
| Last 5 Days | 6.8% |
| Last 1 Month | 11.6% |
| Last 6 Months | 17% |
Business Basics
Zydus Wellness Limited, a prominent player in the consumer goods sector, operates with a focus on providing high-quality and innovative products to enhance the well-being of its customers. Established with a commitment to excellence, Zydus Wellness has built a solid foundation by prioritizing business ethics, customer satisfaction, and operational efficiency.
At the core of its business strategy is a diverse portfolio of products that cater to different segments of the market. This portfolio includes well-known and trusted brands that span across categories such as health supplements, skincare, and personal care. By offering a range of products tailored to various consumer needs, Zydus Wellness has achieved a competitive edge and a strong market presence. Effective distribution and marketing strategies have played a pivotal role in the company’s success. Zydus Wellness has established a robust distribution network that ensures its products are readily available to consumers across urban and rural areas. This extensive reach is complemented by strategic marketing campaigns that resonate with the target audience and communicate the brand’s values effectively.
Financially, Zydus Wellness demonstrates prudent management by maintaining a healthy balance between profitability and growth. The company’s financial strategies include prudent cost management, strategic pricing, and investments in capacity expansion to meet growing demand.
Zydus Wellness’ Brand Portfolio
Company’s brands have gained recognition for their quality, innovation, and commitment to enhancing the overall well-being of consumers. Here are some of the notable brands under the Zydus Wellness umbrella:
Sugar Free: Sugar Free is a pioneering brand that offers a range of sugar substitutes and artificial sweeteners. With a focus on catering to individuals with diabetes or those who are conscious about their sugar intake, Sugar Free provides a safe and tasty alternative to traditional sugar, enabling people to enjoy the sweetness they love without compromising their health.
Nutralite: Nutralite is known for its innovative line of healthy and tasty spreads. These spreads are designed to be a healthier alternative to butter and margarine, as they are rich in essential nutrients and lower in unhealthy fats. Nutralite’s offerings include variants infused with Omega-3 fatty acids and vitamins, contributing to a balanced diet. Nutralite Veda is a sub-brand that focuses on natural and plant-based nutrition. It offers products like plant-based protein powders and nutrition bars that cater to individuals looking for sustainable and ethical dietary choices.
Everyuth Naturals: Everyuth Naturals is a brand that focuses on skincare products formulated with natural ingredients. From face washes and scrubs to face masks and cleansers, Everyuth Naturals aims to provide effective skincare solutions that harness the power of nature, catering to various skin types and concerns. There is an extension of the Everyuth Naturals brand, specializing in hair care products.
Complan: Complan is a well-recognized brand in the nutritional supplement space. It offers a range of powdered nutritional drinks that are packed with essential vitamins, minerals, and proteins, making them suitable for individuals seeking balanced nutrition, especially children and those with increased nutritional needs.
Actilife: Actilife is a brand dedicated to promoting an active and healthy lifestyle. It offers a range of protein-rich products, including shakes and bars, designed to support muscle growth, recovery, and overall fitness goals.
Sugarlite: Sugarlite is another brand under the Zydus Wellness umbrella that offers healthier sugar alternatives. It provides low-calorie sugar options for those aiming to manage their weight and sugar intake without compromising on taste.
Q1 FY24 Financial Performance
Zydus Wellness Ltd reported Revenues for Q1FY24 of ₹702.00 Crores up from ₹696.00 Crore year on year, a rise of 0.86%. Consolidated Net Profit of ₹110.00 Crores down 19.71% from ₹137.00 Crores in the same quarter of the previous year. The Earnings per Share is ₹17.35, down 19.41% from ₹21.53 in the same quarter of the previous year.
Updates On Brands’ Performance
Zydus launched new campaigns of Glucon-D sachets and Glucon-D Mango Blast variant, which are our new offerings for the season, to boost trials for the new launches. At MAT, the glucose powder category has shrunk by 3%. Glucon-D brand maintains its top position with a market share of 59.9%, a decrease of 57 basis points from the same period last year.
As per the management, “The country witnessed erratic weather patterns with unseasonal rains across various states, sales of our key summer season brand, Glucon-D, which contributes a significant proportion of overall sales in quarter 1 is also impacted due to the same.”
In the last fiscal year, the company revised the Complan pack price architecture in response to competitive actions such as aggressive LUPs and price reductions. Complan has seen a 12% increase in household usage at the MAT level, which has contributed to the brand’s growing volume uptake.
At the MAT level, the health food drinks category has grown by 2%. Complan’s market share was 4.5%. On the sweeteners brand, the Sugar Free brand maintained its year-on-year uptake growth momentum in the first quarter. In the second quarter, a new communication focused on motivating consumers to adopt a healthier lifestyle through small chains was launched. With a market share of 96.2%, the brand maintains its dominance.
Furthermore, the Nycil brand experienced strong growth in the third quarter, aided by media campaigns for talc and body mist. At the MAT level, the prickly heat category — powder category has shrunk by 4.5%. Nycil has maintained its number one position with a market share of 35.5%, which is an increase of 117 basis points over the same period last year.
| Brands | Market Rank | Market Share | Change |
| Glucon D | 1 | 59.9% | -57 |
| Complan | 5 | 4.5% | -31 |
| Sugar Free | 1 | 96.2% | +67 |
| Nycil | 1 | 35.5% | +117 |
| Everyuth Facial | 5 | 6.2% | -48 |
| Everyuth Scrub | 1 | 42.4% | +42 |
| Everyuth Peeloff | 1 | 78.7% | +19 |