Honasa Consumer reported a remarkable 93% year-on-year increase in its net profit, reaching INR 29.4 crore for the September quarter of the financial year 2024 (Q2FY24). The parent company of direct-to-consumer (D2C) brands like Mamaearth, The Derma Co, and BBlunt had incurred a loss of INR 15 crore in the same period the previous year. The profit in the prior quarter (Q1FY24) amounted to INR 24.7 crore.
According to the firm’s first-ever earnings update since its stock market debut earlier this month, consolidated revenue from operations grew by 21 per cent year-on-year to INR 496.1 crore, up from INR 410.4 crore a year ago and INR 464.4 crore in Q1FY24. This growth was driven by a volume increase of 27 per cent year-on-year. Mamaearth recorded an earnings before interest, tax, depreciation, and amortization (EBITDA) of INR 40 crore for the reported quarter, up by 53 per cent year-on-year.
“Our business has grown by 33 per cent Y-o-Y in the first half (H1) FY24 which is 3.8 times the median growth of FMCG companies in India,” said Varun Alagh, chairman and chief executive officer, Honasa Consumer.
He mentioned that the company’s profit experienced a significantly swifter growth compared to its revenues, as the profit after tax (PAT) for the first half (H1) surged by an impressive 1,377 per cent to INR 54 crore.
“Dr Sheth’s has become the 4th brand from Honasa portfolio to enter the 150 crore club in terms of annual recurring revenue after Aqualogica and Derma Co,” Alagh added.
The company’s overall expenses for the quarter amounted to INR 463.9 crore, reflecting an 18% year-on-year increase from INR 392.3 crore in the corresponding period last year.
The company extended its offline distribution to 165,937 outlets, marking a 47% year-on-year growth as of September 2023. According to a Jefferies report, Mamaearth secured a position among the top 15 beauty and personal care brands in India, surpassing several established legacy brands.