Honasa Consumer, the omnichannel beauty and personal care (BPC) company, posted a 251% year-on-year (YoY) increase in net profit for the third quarter of FY24 driven by rising revenue and operational efficiencies.
Honasa, which owns brands like Mamaearth, The Derma Co., and Aqualogica, among others, reported a net profit of Rs 25.9 crore for Q3 FY24 as compared to Rs 7.1 crore a year ago.
Its revenue for the quarter stood at Rs 488 crore, a 27.8% rise from Rs 382 crore last year.
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Honasa Consumer CEO Varun Alagh (left) and Chief Innovation Officer Ghazal Alagh
” align=”center”> Honasa Consumer CEO Varun Alagh (left) and Chief Innovation Officer Ghazal Alagh
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Speaking on the company’s performance, Honasa CEO Varun Alagh said, “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 colour care with Mamaearth showcases our ability to build new categories and the versatility of the brand. As we move forward, the focus continues to be on purpose-based brand building, innovation, and distribution expansion.”
The company also saw its volumes rise 35% during the quarter, while its EBITDA or gross profit margins stood at 7.1%, a 192% YoY growth.
Meanwhile, Honasa’s Q3 performance compared to Q2 of the current fiscal saw a decline in both revenue and net profit—by 1.6% and 12.5%, respectively.
At market close on Friday, Honasa stocks were up 4.45%, trading at Rs 435 apiece, on the National Stock Exchange.
Besides its online presence, the omnichannel company is selling at 1,77,366 FMCG retail outlets in India, increasing its distribution by 37% YoY. It is also present in 8,000-plus stores across 31 modern trade chains.
Honasa noted that online growth was driven by platforms with a strong presence in Tier II locations. The company also added that BPC products market in India is expected to grow more than 11% on a CAGR basis between 2022-27.
Edited by Suman Singh
