Zydus Wellness hosted a conference call on Feb 4, 2025, which was represented by Dr. Sharvil Patel, Chairman; Mr. Tarun Arora, CEO; and Mr. Ganesh Nayak, Director.

Key takeaways of the call

Growth in Q3 FY25 was driven by robust consumer demand in the personal care segment, which posted double-digit growth of 50.3% YoY, while food and nutrition segment recorded a growth of 8.8% YoY.

During 9M FY25, personal care segment grew 39.2% YoY and food and nutrition segment grew 11.8% YoY.

The company continues to drive innovation, category expansion, and market leadership, reinforcing its strong growth momentum.

The company anticipates that changes in tax slabs in Budget 2025 will drive increased consumption in the future. Management is also forecasting double-digit revenue growth for FY26.

In Q3 FY25, the company observed steady growth in rural consumption in both food and non-food categories.

The company sustained its gross margin even under Inflationary pressures, which affected input prices. Gross margin growth was driven by strategic hedging, favorable product mix, and calibrated pricing.

Smaller unit packs are growing at a faster rate than larger packs, while the trend towards premiumization remains robust.

Management anticipates a tax of approximately Rs 3.5-4 crore for Q4 FY25.

During the quarter, the company completed acquisition of 100% equity share capital of Naturell (India). Naturell (India) specializes in manufacturing, research and development, marketing of nutrition bars, protein cookies, protein chips, and health food products under the Ritebite Max Protein (Protein fuelled healthy snacks) and Ritebite (fibre-enriched snacks).

In the personal care segment, the company’s brand Nycil is driving continuous volume growth with a market share of 35.5% as per MAT Dec 2024. Everyuth widened its product portfolio. Scrub and peel off continues to strengthen its leadership with growth in volume market share.

Prickly heat powder market share was 33.9% as per MAT Dec 2024. Facial cleaning market share was 7.2%, Scrub market share was 47.3% and Peel-Off market share was 77.8%.

Glucon-D market share was 58.9% as per MAT Dec 2024. Complan penetration continues to grow with a market share of 4.1%.

Nutralite continued to widen its product basket supported by focused B2B and B2C teams.

In Q3 FY25, Sugar Free has maintained its number one position with a market share of 95.4%. Sugar Free Green continues double-digit growth trajectory since last 15 quarters.

I’m Lite, a unique formulation of sugar blended with stevia to offer consumers 50% less calories than regular sugar, has consistently received positive response in the market.

Most of the company’s brands are the market leaders in the respective categories/segments and continued to perform well.

Leveraging its strong research and development capabilities, Nutralite Doodhshakti Professional forayed into processed cheese this quarter, while Naturell launched the choco-filled fibre bar ''Melting Chocolate,'' and two variants under the fruit-filled bar range— ''Blueberry Blast'' and ''Berry Delite''—and ''Protein Bar Bytes''.

In Q3 FY25, organized trade continues to surpass expectations. It contributed 23% to total sales.

The company is targeting 8-10% of its total revenue from international business in next 4-5 years.

Sugar Free franchise and Complan constitute 90% of the overall international business. Despite the subdued macro-economic conditions in Nigeria, the business demonstrated a positive performance.