Zydus Wellness (531335) Q4 03/04 earnings summary

Executive summary

• FY 2003-04 sales and other income rose to Rs 1,839.38 lakh from Rs 912.53 lakh; net profit increased to Rs 184.23 lakh from Rs 93.58 lakh.

• Growth accompanied wider distribution and product additions across margarine, butter and processed cheese.

Financial highlights

• Sales and other income increased 101.56% YoY to Rs 1,839.38 lakh; expenditure rose 98.74% to Rs 1,581.87 lakh.

• Profit before tax was Rs 257.51 lakh versus Rs 116.57 lakh; profit after tax was Rs 184.23 lakh versus Rs 93.58 lakh.

• Sales were Rs 1,801.24 lakh versus Rs 886.48 lakh; interest income was Rs 21.73 lakh versus Rs 12.95 lakh.

• Proposed dividend was Rs 0.80 per Rs 10 share, absorbing Rs 44.93 lakh including dividend tax.

Outlook and guidance

• Planned to expand margarine distribution into Madhya Pradesh, West Bengal and the North-East.

• Planned to manufacture and market non-dairy whipping cream for bakeries, hotels and restaurants; the niche market was cited as growing ~30% annually.

• Management intended to maintain focus on analogue and healthier food alternatives as health consciousness increased.