Honasa Consumer's profit rises 93% to Rs 29.4 crore in September quarter

Honasa Consumer reported a 93 per cent year-on-year (Y-o-Y) increase in its net profit to Rs 29.4 crore for the September quarter of financial year 2024 (Q2FY24). The parent firm of direct-to-consumer (D2C) brands like Mamaearth, The Derma Co, and BBlunt, recorded a loss of Rs 15 crore in the year ago period. Profit in the previous quarter (Q1FY24) was Rs 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 21 per cent Y-o-Y to Rs 496.1 crore, up from Rs 410.4 crore a year ago and Rs 464.4 crore in Q1FY24. This was driven by volume growth of 27 per cent Y-o-Y. Mamaearth recorded an earning before interest, tax, depreciation, and amortisation (Ebitda) of Rs 40 crore for the reported quarter, up 53 per cent Y-o-Y.

“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 added that the firm's profit grew much faster than the revenues, with H1 profit after tax (PAT) growing by 1,377 per cent to Rs 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 firm’s total expenses for the quarter stood at Rs 463.9 crore, an 18 per cent Y-o-Y increase from Rs 392.3 crore a year ago.

The firm expanded its offline distribution to 165,937 outlets, a growth of 47 per cent Y-o-Y (as on September 2023). Based on a report by Jefferies, Mamaearth entered the top 15 BPC brands in India, ahead of many legacy brands.