Honasa Consumer Ltd, the parent company of skincare brand Mamaearth, on Friday posted its third quarter profit for the financial year 2023-24 at Rs 25.90 crore, up 263.3 per cent in comparison to Rs 7.13 crore during the corresponding quarter of previous year. For the nine month period of FY24, the company’s PAT jumped 7 times to Rs 80 crore. It posted revenue from operations at Rs 488.22 crore, up 27.8 per cent as against Rs 382.16 crore during the third quarter of FY23. It reported Q3 sales growth of 28 per cent on-year. The company reported EBITDA margin at 7.1 per cent, up 397 bps on-year.
Varun Alagh, Chairman and CEO, HCL, said, “The Q3 result is a testimony of our deep understanding of the beauty market in India. As we move ahead to capture this market further, our innovation-driven brand building playbook uniquely positions us to identify many opportunities to continue our growth trajectory. Four out of six brands from our portfolio are already in the Rs 150 crore ARR club and we see this as a testimony of our capabilities. Having built color care with Mamaearth showcases our ability to build new categories and versatility of the brand. As we move forward, focus continues to be on purpose-based brand building, innovation and distribution expansion.”
Honasa Consumer stated that the business continues to be capital efficient, with a negative working capital cycle of minus 6 days. In a statement, it said, “With strong purpose driven initiatives, Mamaearth continues to be one of the most loved brands. Mamaearth grew its household penetration of facewash by 280 bps and of shampoo by 110 bps in 2 years. Younger brands continue to grow, with The Derma Co achieving EBITDA profitability.” The company has launched 122 new products in CY23, wherein its Rosemary hair-care range is scaling up, achieving an ARR of +Rs 50 crore in ~6 months of launch.
Honasa Consumer has also expanded its omnichannel distribution with over 1.7 lakh retail touchpoints, increasing distribution by 37 per cent YoY. It has also grown its modern trade presence with availability in 8000+ stores across 31 chains. It also stated that the company’s Exclusive Brand Outlets (EBOs) reached a milestone with the opening of the 100th store. The company also talked about its strengthened online partnerships with platforms like Purplle and Meesho that have “yielded substantial year-on-year business growth, underscored by strategic banner placements and co-branding efforts”.
