Nureca Ltd
Nureca Ltd

Nureca, a leading medical device and wellness company Q1FY22 operating revenue grows 4x to INR 1,195 mn (YoY)

ANI | Updated: Aug 03, 2021 13:55 IST

Mumbai (Maharashtra) [India], August 3 (ANI/PRNewswire): Nureca Ltd., leading healthcare and wellness company in India, announced financial results for the first quarter ended June 30th, 2021.

Commenting on the performance, Aryan Goyal, Founder and CEO of the Company, said, "Our brands - Dr Trust, Dr Physio and Trumom have grown exceptionally over the past few years and now enjoy higher credibility and pull on all the digital channels. We were able to grow a large loyal customer base in a relatively short period of time as a result of our focused marketing strategy, exceptional product quality and better features compared to other players.
During the last year, we witnessed acceleration in consumers demand shifting from offline channels to online channel which is very positive for Nureca which is solely focused on digital sales channel.
Nureca has been able to capitalize on this trend and our Q1FY22 results are a testament of the same. We saw a very strong growth in Q1 due to robust demand for quality preventive healthcare products supported by shifting consumer demand and restricted movements due to lockdown. Higher demand also resulted in lower discounts and better margins.
We expect the growth momentum to continue in coming quarters supported by strong demand, new product launches and improved last mile reach."
Commenting on the performance, Saurabh Goyal, Managing Director of the Company, said, "Over the last decade, rising income and standard of living has led to increase in lifestyle related chronic diseases. Although, advancement in medical technology has made it possible to treat these chronic diseases, it remains very expensive for most Indians. This has led to higher consumer awareness around preventive care. At Nureca, we are investing in technology and tools that make effective and affordable remote patient monitoring more accessible to Indians. Our state-of-the-art, USFDA approved products are designed to help patients monitor their health in the comfortable environment of their home. We are investing in value added technologies which will empower Indians to take control of their health and improve their longevity of life.
The evolving trend of health-conscious India has also benefited the nutraceutical sector, which has been growing at a CAGR of 21 per cent. Exercise, a balanced diet, and the use of nutritional supplements have all become part of a healthy lifestyle. The average urban and semi-urban Indian is growing increasingly health and fitness conscious. This presents India's nutraceuticals industry a huge growth opportunity. To cater to the increasing demand, we have introduced a range of niche supplements, backed by scientifically proven ingredients. Going forward, we will continue to add more products in this category."
* GMV for the Q1F22 at INR 1,627mn as compared to Rs 423mn in Q1FY21, an increase of 285 per cent
* Operating Revenue was INR 1,195mn in Q1FY22 as compared to Rs 302mn in Q1FY21, an increase of 295 per cent
* Operating Revenue surged 4x as compared to Q1FY21 driven by strong demand for medical products, launch of new SKUs and sustainable movement of demand from offline channels to online channels
* EBITDA was Rs 492mn as compared to Rs 132mn in Q1FY21, an increase of 274 per cent

* Better operating leverage and strong gross margins contributed to higher EBITDA margins
* PAT stood at INR 362mn as compared to Rs 94mn in Q1FY21, a growth of 283 per cent
* PAT grew slightly higher than EBITDA due to higher other income and lower interest expense as the company repaid part of its borrowing in previous quarters which helped negate the impact of higher depreciation
* Strong balance sheet with Cash and Cash equivalents of Rs 155 Cr.
* Product Pipeline:
o SKUs launched till FY21 - 142
o SKUs launched in Q1FY22 - 8
o Pipeline for the year - 52+
* During the quarter, 8 new products were launched with total SKUs now at 150
* Majority of products launched during the quarter were Nutraceuticals, focusing on dietary supplements to capitalize on higher demand for such products driven by awareness and health-conscious Gen-Z
* Nutraceuticals are part of preventive healthcare market which has been core focus area for Nureca since inception. Our brands such as Dr Trust already enjoys high credibility and loyal customer base which facilitates easier cross selling opportunity for our new products.
* New products have seen strong positive response from customers and have gained robust traction since launched
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