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Honasa Consumer Ltd, known for brands such as Mamaearth, the Derma Co and Bblunt, posted a consolidated net profit of ₹30.47 crore for the fourth quarter ended March 2024, its highest-ever quarterly profit. It had posted a loss of ₹161.75 crore in the year-ago period. Revenue from operations was up 21.5 per cent to ₹471.09 crore in the quarter under review.
The company also announced the acquisition of Cosmogenesis Labs, to strengthen Honasa’s R&D capabilities. It did not disclose the commercials.
“With a 780-bps improvement in EBITDA margins y-o-y, Honasa Consumer clocked its highest-ever quarterly Profit After Tax,” it noted. The company added that its underlying volume growth was at 27.5 per cent in Q4 FY24.
The company claimed that its flagship brand, Mamearth outpaced its competition by threefold in y-o-y GMV growth (CY23-o-CY22), as per Euromonitor. This brand’s reach was at 1,88,377 retail outlets as of March’24, up 34 per cent y-o-y.
Acquisition Benefits
Commenting on the acquisition, Varun Alagh, Chairman and CEO, Honasa Consumer stated that that it will help the company to further strengthen its product development expertise and enhance understanding on crafting products for Indian consumers.
For the full FY24, the company posted a net profit of ₹111 crore (vs loss of ₹151 crore). Revenue from operations was up 28.6 per cent to ₹1920 crore. New products contributed a share of 18 per cent of FY24 revenue from operations.
“Despite industry headwinds, Honasa has demonstrated remarkable resilience and growth for the quarter and fiscal,” Alagh added. “We have stayed committed to delivering growth, improving profitability and increasing our distribution network. Mamaearth’s unwavering popularity among consumers has been a key driver of our continued success, while the Derma Co is catching up and has recently achieved an ARR of over ₹500 crore,” he stated.
In the earnings call, Algah said the company expects the Derma Co to enter the ₹1000 crore club in the next 3-5 years. It also expects Aqualogica and Dr. Sheth’s to become ₹500 crore brands during this period. “ Our House of Brands strategy is also helping us dominate some of the fast-evolving categories such as sunscreens,” he added.
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