MAM
Zydus reports 4.9 per cent sales growth in Q2
MUMBAI: Zydus Wellness Ltd reported a growth of 9.3 per cent in gross sales for the second quarter ending 30 September 2020. The total income from top line sales was reported at Rs 3,420 million, up by 4.9 per cent (y-o-y).
PBT before exceptional items was down by 63.1 per cent to Rs 74 million (y-o-y). However, the same was up by 27 per cent before GST budgetary support that ceased for Sitarganj plant from January 2020 onwards.
During the quarter gone by, key brands namely, Sugar Free, Everyuth Scrub and Everyuth Peel Off, Glucon D and Nycil continued to hold strong positions in their respective categories.
The company continued to grow the categories and increase market share of its brands with new offerings and expanding its reach through e-commerce channels and building brand advocacy during the quarter.
Glucon-D ImmunoVolt was launched to tap the heightened need of Immunity products for kids. The product is fortified with Vitamin C, Vitamin D, and Zinc to boost immunity. Complan was launched in an economical and handy 75 gram sachet priced at Rs 30 per pack. Sugar Free has seen brisk sales in the e-commerce channel and has grown at more than 100 per cent versus the corresponding quarter last year on this channel. The quarter also witnessed the launch of Everyuth Aloe Vera & Cucumber Gel in face moisturizers segment.
During the quarter, the wellness brand completed preferential issue and QIP issue of equity shares by raising Rs 3,499 million and Rs 6,500 million respectively from the above issuance, the proceeds of which will be used towards redemption of non-convertible debentures. As a part of a strategic initiative to pare down the debt, the company bought back its own non-convertible debentures of Rs 11,050 million which will help the company reduce the debt burden and deleverage the balance sheet. In the process of buying back its own non-convertible debentures of Rs 11,050 million, the company has paid a one-time debenture redemption premium of Rs 980 million which is recorded as an exceptional item in the financials for the quarter.
The completion of buy back of non-convertible debentures will result in lower interest cost and shall have a positive impact on the earning per share (EPS) of the company over a period of time.
Brands
Kwality Wall’s reports standalone losses following strategic HUL demerger
Ice cream major faces Rs 64 crore Ebitda loss amid commodity inflation and muted Q3 sales
MUMBAI: Kwality Wall’s (India) Limited (KWIL) has released its first set of financial results as a standalone entity, revealing a challenging start to its independent journey. Following its successful demerger from Hindustan Unilever Limited (HUL) on 1st December 2025 and its subsequent listing on 16th February 2026, the company is navigating a transition period marked by structural changes and high input costs.
For the quarter ended 31st December 2025, the company reported revenue of Rs 222 crores. Despite the revenue base, the bottom line was impacted by several factors, resulting in an Ebitda loss of Rs 64.2 crores. When calculated on a Pre-IND AS 116 basis, the Ebitda loss stood at Rs 83.8 crores.
Organic Sales Growth (OSG) declined by 6.5 per cent year-on-year during the quarter. Volume growth, however, saw a marginal increase of 1.2 per cent. The company reported a gross margin of 41.5 per cent. Additionally, exceptional expenses amounting to Rs 94 crores were recorded, primarily linked to non-recurring costs during the transition phase.
Performance across portfolios and channels was mixed. Within the impulse portfolio, brands such as Magnum and Cornetto recorded mid-single digit volume growth, indicating steady demand in on-the-go consumption. However, the in-home portfolio, which includes take-home packs, experienced muted consumption. The company is planning a relaunch of this category with improved offerings ahead of the 2026 season.
Quick commerce (Q-Com) continued to emerge as a strong growth driver, delivering robust double-digit growth during the quarter. Meanwhile, the company also expanded its physical distribution network by increasing the number of company-owned cabinets across markets.
Margin pressure during the quarter was driven by a combination of one-off factors and broader cost inflation. Gross margins were impacted by around 600 basis points due to trade investments made for stock liquidation. Additionally, cocoa price inflation contributed to another 400 basis points of pressure on margins.
Deputy managing director Chitrank Goel attributed the muted performance partly to prolonged monsoons and transitional challenges linked to the GST framework. Operating expenses also increased as the company invested in establishing its standalone supply chain, operational systems and corporate infrastructure following the demerger.
Looking ahead, the management remains focused on a volume-driven growth strategy. To restore profitability, the company has initiated a cost productivity programme aimed at reducing non-consumer-facing costs. It is also working on building regional manufacturing networks to optimise logistics expenses and improve operational efficiency.
The commodity outlook for the near term remains mixed. Dairy prices are expected to remain firm due to tight supply conditions and rising fodder costs. Sugar prices may also move higher following increases in the Minimum Selling Price (MSP). While cocoa prices have moderated recently, currency depreciation has offset some of the potential cost relief for the company.
