Mamaearth Q3 results: Profit rises 264% to Rs 25.9 cr, revenue jumps 28%

Weak consumer demand impacts sequential performance

Honasa Consumer Ltd, the parent company of direct-to-consumer (D2C) brands such as Mamaearth, The Derma Co, and BBlunt, on Wednesday reported a 264 per cent year-on-year increase in its net profit to Rs 25.9 crore for the third quarter (Q3) of the financial year 2023-24 (FY24), compared to Rs 7.1 crore in the same period a year ago.

The company’s consolidated revenue from operations grew 28 per cent year-on-year to Rs 488.2 crore, up from Rs 382.2 crore a year ago and Rs 496.1 crore in Q2 FY24.

The Gurugram-based firm, which was listed in 2023, saw the impact of slower consumer demand on its sequential performance. The firm's profit on a quarter-on-quarter basis was down 12 per cent from Rs 29.4 crore in the preceding quarter. Revenue on a sequential basis was down 1.5 per cent.

The firm's total expenses for the quarter were Rs 464.5 crore, up from Rs 378.5 crore a year ago and Rs 463.9 crore a quarter ago.

“The Q3 results are a testimony to our deep understanding of the beauty market in India. Four out of six brands from our portfolio are already in the Rs 150 crore Annualised Revenue Rate (ARR) club and we see this as a testimony to our capabilities. Having built colour care with Mamaearth showcases our ability to build new categories and versatility of the brand. As we move forward, focus continues to be on purpose-based brand building, innovation, and distribution expansion,” said Varun Alagh, Chairman and Chief Executive Officer, Honasa Consumer.

Honasa saw its sales rise 28 per cent year-on-year during the quarter, on the back of festival season sales. Its consolidated EBITDA grew by 192 per cent year-on-year at Rs 34.5 crore.

The company launched 122 new products during the calendar year 2023 while expanding its omnichannel distribution to over 170,000 touchpoints. Its distribution network grew by 37 per cent year-on-year.

Honasa’s younger brands also performed well during the quarter, with The Derma Co achieving EBITDA profitability.

Its Colourcare category of colour cosmetic products crossed the Rs 150 crore annualised revenue run rate mark, with around 1 million units sold in Q3 FY24. Meanwhile, the firm’s Rosemary hair-care range scaled up to an ARR of over Rs 50 crore in around six months of launch.