Zydus Wellness Q3 net profit jumps over 1,200% YoY to Rs 23 crore

The company reported consolidated net sales of Rs 384.9 crore, a growth of 2.3%; Five key brands maintained leadership positions in respective categories

Zydus Wellness Ltd. saw its net profit for the quarter ended December 31, 2021 jump by 1,239 per cent on a year-on-year (YoY) basis to Rs 23.3 crore, up from Rs 1.74 crore in the said quarter last year.

The company reported consolidated net sales of Rs 384.9 crore, growth of 2.3 per cent on a YoY basis.

Commenting on the results, the company stated that like the rest of the FMCG industry, Zydus Wellness too continued to face pressure on the gross margins due to high commodity inflation. However the company has taken several measures to address this challenge which shall be reflected in gross margin improvement in the coming quarters.

Five of the Company’s brands Glucon-D, Sugar Free, Nycil, Everyuth Scrub and Everyuth Peel off face mask maintained their leadership positions in their respective categories.

As per the MAT December 2021 report of Nielsen and IQVIA, Glucon-D has maintained its number one position with a market share of 58.1 per cent in the glucose powder category. In the sugar substitutes’ category, Sugarfree has preserved its first position with a market share of 96 per cent, which is an increase of 104 basis points over the same period last year.

Sugarlite witnessed a strong double digit during the quarter across all channels supported by consumer promos and TVCs. In the prickly heat powder category, Nycil continued to remain in number one position with a market share of 34 per cent.

On the other hand, Everyuth Scrub is the leading brand and has sustained its number one position with a market share of 39.2 per cent in the facial scrub category, which is an increase of 448 basis points over the same period last year. Everyuth continued to grow at a good double digits supported by ATL campaigns on scrub portfolio and new body lotion range.

In the peel off category, Everyuth Peel off has maintained its first position with a market share of 76.4 per cent, with Everyuth brand being at number 5 position with market share of 6.5 per cent at overall facial cleansing segment level.

In the Health Food Drink (HFD) category, Complan has a market share of 5.2 per cent.

Meanwhile, over the last three years of acquisition of Heinz India Pvt. Ltd., Zydus Wellness has consolidated and grown market shares across categories despite losing sales in critical months for two consecutive years due to COVID. Moreover, the company launched multiple innovations, doubled its direct distribution reach, made significant strides in growing business ahead of the category in both online and offline organized trade, reduced cost to serve and simplified the organization leading to synergy benefits much ahead of its estimates.