Zydus Wellness (531335) Q2 24/25 earnings summary

Executive summary

• Consolidated net sales grew 12.1% year-on-year, driven by strong volume growth and robust performance in personal care and food segments.

• Achieved key milestones in Q2 FY25, with rural demand recovering and organized trade, e-commerce, and modern trade channels maintaining 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-on-year; YTD consolidated sales were ₹13,298 million.

• EBITDA increased 16.7% year-on-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; consolidated net profit for the half year was ₹1,686 million.

• Adjusted PAT (excluding exceptional items) rose 154.2% year-on-year to ₹150 million in Q2.

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

Outlook and guidance

• Management expects 5%-6% medium to long-term growth in the nutritional beverages category, with potential to outperform if initiatives succeed.

• Gross margin expansion is expected to continue in the next 1-2 quarters, with a balanced focus on growth and profitability.

• 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 of the financial year.