Mamaearth's Meteoric Rise as Honasa Consumer's Q2 FY24 Profits Soar by 94 Percent
Mamaearth's Money Moves, Q2 FY24 Revenue Rockets to INR 496.1 Cr!
22 November 2023
Honasa Consumer Ltd, the parent company of Mamaearth, reported a remarkable 94% increase in Profit After Tax (PAT) to INR 29.4 Cr in Q2 FY24, compared to INR 15.2 Cr in the same quarter last year.
Mamaearth, recovering from a net loss of INR 151 Cr in FY23, achieved a significant turnaround by posting a PAT of INR 54.1 Cr in H1 FY24, contributing substantially to Honasa's overall success.
Varun Alagh, Chairman and CEO of Honasa Consumer, highlighted Dr. Sheths' entry into the INR 150 Cr club, becoming the fourth brand from the portfolio to achieve this milestone, alongside Aqualogica and Derma Co, showcasing the company's diverse and successful brand management.
Honasa Consumer Ltd, the parent company of the recently-listed D2C unicorn Mamaearth, has reported impressive financial results for the second quarter of the financial year 2023-24 (FY24). The company's profit after tax (PAT) surged by nearly 94%, reaching INR 29.4 Cr in Q2 FY24, compared to INR 15.2 Cr in the same quarter last year. This remarkable growth was complemented by a 21% year-on-year increase in operating revenue, which soared to INR 496.1 Cr from INR 410.5 Cr in Q2 FY23.
After facing a net loss of INR 151 Cr in FY23, Mamaearth, the flagship brand of Honasa, posted a significant turnaround, reporting a PAT of INR 54.1 Cr in the first half of FY24. Varun Alagh, Chairman and CEO of Honasa Consumer, expressed pride in the company's achievements, highlighting Mamaearth's pivotal role in leading the growth. He emphasized that Mamaearth's success contributed significantly to Honasa's overall performance.
Honasa Consumer manages a diverse portfolio, including brands like The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheths. Varun Alagh shared that Dr. Sheths has now joined the prestigious INR 150 Cr club, becoming the fourth brand from the Honasa portfolio to achieve this milestone, following Aqualogica and Derma Co.
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Honasa's exceptional performance in the market is evident from its 33% year-on-year growth in the first half of FY24, surpassing the median growth of FMCG companies in India by 3.8 times. Varun Alagh highlighted the remarkable growth in profits, with the H1 PAT witnessing a staggering 1,377% increase to INR 54 Cr.
The financial snapshot of Q2 FY24 reveals that Mamaearth's consolidated revenue from operations experienced a robust 21% year-on-year growth, reaching INR 496.1 Cr. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter stood at INR 40 Cr, marking a 53% increase year-on-year.
Honasa Consumer's strategic expansion into offline distribution, reaching 165,937 outlets, reflects a 47% year-on-year growth as of September 2023. Notably, Mamaearth has secured a place among the top 15 Beauty and Personal Care (BPC) brands in India, outpacing several established legacy brands, according to a report by Jefferies.
In conclusion, Honasa Consumer's stellar performance in Q2 FY24, driven by Mamaearth's resurgence and the success of other portfolio brands, positions the company as a significant player in the D2C and FMCG sectors, showcasing remarkable financial growth and strategic market expansion.