Q1 2027 Zydus Wellness Ltd Earnings Call Transcript
Key Points
- Consolidated net sales grew 66.7% year-on-year, driven by strong performance from the Comfort Click business and resilient domestic demand.
- International business, including Comfort Click, delivered a like-to-like growth of 24.8%, with the business becoming EPS accretive.
- Domestic portfolio showed robust growth in skin and hair care (34.5%) and food and nutrition (16%), with brands like Everyuth and Nutralite outperforming.
- Gross margin expansion was strong, supported by premiumization and a favorable product mix, leading to a 55.3% increase in EBITDA.
- Innovation pipeline remains robust with launches like Complan Power Play Milkshake and VieMax Diabetes Care, targeting new demand spaces and premium segments.
- Organized channel saliency reached an industry-leading 38%, with quick commerce and digital commerce driving strong double-digit growth.
- RiteBite Max Protein continues its strong growth trajectory, reinforcing leadership in protein snacking through innovation and distribution expansion.
- Seasonal brands, particularly Nycil and Glucon-D, declined by 12% due to unseasonal rainfall in key markets, impacting overall domestic growth.
- Domestic business growth was modest at 4.6%, with the summer portfolio weakness offsetting gains in other categories.
- Net profit declined by 7% year-on-year, impacted by higher amortization of acquired brands and a higher effective tax rate of 27% due to UK tax rules.
- The company faces ongoing uncertainty from geopolitical disruptions, which could impact input costs and supply chains.
- Nycil's performance was further affected by cautious channel stocking and higher retailer inventory from the previous year, leading to slower offtake.
- The effective tax rate is expected to remain elevated in the near term, with cash tax component lower but overall rate around 25% from next year.
Ladies and gentlemen, good day and welcome to the Zydus Wellness Limited Q1 FY 2027 earnings conference call. (Operator Instructions). Please note that this conference is being recorded. I now hand the conference over to Mr. Aniket Kamble.
Thank you and over to you sir.
Hi, it's an absolute pleasure from ICICI Securities to host the Q1 FY 2027 earnings call for the Zydus Wellness.
From the management, we have Mr. Ganesh Nayak, Non-Executive Director, Mr. Tarun Arora, CEO and Mr. Umesh Parikh, CFO.
I now hand over the call to management for further remarks.
Thank you and over to you, sir.
Thank you.
Good evening and welcome to the post-results teleconference of Zydus Wellness Limited for quarter one, financial year 2026-2027. I have with me Mr. Ganesh Nayak, Director and Mr. Umesh Parikh, CFO on the call from our side.
During the
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