Zydus Lifesciences reports a 66.7% year-on-year surge in first-quarter sales, boosted by its ComfortClick acquisition and stronger domestic demand, amid mixed margin performance and strategic US expansion plans.
Zydus Lifesciences posted a sharp jump in first-quarter sales, helped by its ComfortClick acquisition and stronger domestic demand, even as higher amortisation and a tax charge weighed on bottom-line profit. The company said consolidated net sales rose 66.7% year on year, while international business, including ComfortClick, delivered like-for-like growth of 24.8%. EBITDA increased 55.3% to ₹2,417 million, and net profit excluding amortisation of acquired brands rose 26.5%, according to the earnings call summary released on August 11.
Management said the quarter’s margin performance was supported by the higher profitability of ComfortClick and an improved core business mix. The company also said ComfortClick had been earnings per share accretive since the fourth quarter of the previous financial year and should remain so, with continued gains in margins, earnings before interest and tax, and profit before tax. For the full fiscal year, executives reiterated guidance for double-digit growth in the international business, while saying it was still too early to judge the US contribution from the digital-only OTC platform.
On the domestic side, Zydus said skin and hair care revenue grew 34.5% and food and nutrition rose 16%, with organised channel saliency reaching 38%. Complan, NiteBite Max Protein and Sugarfree were among the standout brands, while newer launches such as Complan Power Play Milkshake and VMAX Diabetes Care were presented as evidence of the company’s push into premium, science-led products. Advertising and promotion spending came in at 18.2% of sales, including ComfortClick, with a growing share of digital outlay as consumer attention shifts online.
Not every part of the portfolio moved in step. Seasonal brands fell 12% as frequent summer rain disrupted demand in eastern and northern India, and Glucon-D was roughly flat because weakness in the east offset gains elsewhere. The company also said its effective tax rate for the quarter was close to 27% because of a UK thin-capitalisation disallowance, though it expects the rate to settle closer to 25% for the year. Business Standard reported earlier results had also shown Zydus leaning on new launches in the US market and specialty pharmaceuticals to sustain growth, underscoring a broader strategy that now combines branded consumer health, overseas expansion and a gradually larger innovation pipeline.
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