Q1 2025 Zydus Wellness Ltd Earnings Call Transcript
Key Points
- Zydus Wellness Ltd (BOM:531335) reported a consolidated net sales growth of 20% year-on-year, with 17.1% attributed to volume growth.
- The personal care segment registered a significant double-digit growth of 41.8%, continuing its positive trajectory.
- The company launched several new products, including Complan Immuno-Gro, Everyuth pink clay & charcoal face wash, and Nycil soap in international markets.
- Gross margin improved by 114 basis points sequentially and 314 basis points year-on-year, driven by a favorable product mix and efficient hedging strategies.
- The company repaid its debt in full during the quarter, deleveraging its balance sheet while maintaining a strong cash position.
- Advertisement expenses grew by 19.1% year-on-year, driven by increased brand investment.
- Other expenses increased by 27.7% year-on-year, partly due to the cost of strategy consultants.
- Employee costs saw a substantial rise, partly due to a one-off transition from private to government-based PF.
- The company anticipates lower EBITDA margins in Q2 and Q3 due to seasonal revenue fluctuations.
- The impact of inflation and commodity prices remains a headwind, despite the company's hedging strategies.
Ladies and gentlemen, good day, and welcome to Zydus Wellness' Q1 FY25 results conference call hosted by ICICI Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Manoj Menon. Thank you, and over to you, sir.
Hi, everyone. It's a wonderful good morning, good afternoon or good evening depending on the part of the world you are joining this call from. Representing ICICI Securities. It's our absolute pleasure to host the management of Zydus Wellness once again for the results conference call. This time, the Q1 FY25 results. The company is represented today by Dr. Sharvil Patel, Chairman; Mr. Tarun Arora, CEO; Mr. Ganesh Nayak, Director; Mr. Umesh Parikh, CFO.
Over to the management for the opening remarks and the detailing, post which we'll open the floor for Q&A. Thank you. Over to you, sir.
Thanks, Manoj,
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