Zydus Wellness (531335) Q2 24/25 earnings summary

Executive summary

• Consolidated net sales grew 12.1% year-over-year, with 8.4% attributed to strong volume growth and positive rural recovery.

• Organized trade, e-commerce, and modern trade channels maintained strong momentum.

• Continued to build sustainable business performance, expand relevance to new-age consumers, and win in competitive markets.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were approved by the Board on November 11, 2024.

Financial highlights

• Net sales reached ₹4,907 million in Q2 FY25, up 12.1% year-over-year; YTD consolidated revenue was 13,298 million.

• EBITDA increased 16.7% year-over-year to ₹196 million in Q2; YTD EBITDA up 31.2% to ₹1,749 million.

• Net profit after tax surged 254.2% to ₹209 million in Q2; YTD consolidated net profit was 1,686 million.

• Gross margin improved by 261 basis points year-over-year to 47.5% in Q2.

• Standalone and consolidated total assets as of September 30, 2024, were 40,998 million and 60,075 million, respectively.

Outlook and guidance

• Management expects continued growth in both rural and urban markets, with a focus on innovation and premiumization.

• Gross margin expansion is expected to continue in the next 1-2 quarters, though inflation in key inputs remains a risk.

• Nutrition beverage category projected to grow 5%-6% annually, with potential for higher company growth if initiatives succeed.

• Targeting 8–10% of revenues from international business in the next 4–5 years, with continued momentum in Middle East and South Asia.

• The company notes seasonality in its product portfolio, with revenues and profits typically higher in the first and last quarters.