Honasa Consumer Ltd., the parent company of direct-to-consumer (D2C) brand Mamaearth, has announced a significant increase in its financial performance for the second quarter of fiscal year 2024. The robust results included a net profit of INR 29.4 crore, a substantial increase from the INR 15.2 crore reported in the same quarter of the previous fiscal year. Operating revenue also saw an impressive rise, reaching INR 496.1 crore compared to INR 410.5 crore in Q2 FY23.
The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) for Mamaearth jumped by 53% to INR 40 crore, positioning the brand among the top 15 Beauty and Personal Care (BPC) brands. This achievement comes alongside the news that The Derma Co. and Aqualogica, two other brands within Honasa's portfolio, have also recorded remarkable annual recurring revenues (ARR) of INR 380 crore and INR 180 crore respectively.
CEO Varun Alagh credited innovation as a key factor in their success, particularly as NielsenIQ highlighted a 47% expansion of their offline presence to 1.65 lakh outlets. Despite these strong figures and outperforming the median fast-moving consumer goods (FMCG) company growth in India with a 33% increase in H1 FY24, Honasa's shares experienced a decline, closing at INR 353.15 with a drop of 3.72%.
The first half of FY24 has been notably successful for Honasa, as Mamaearth recovered from an FY23 loss of INR 151 Cr to post a profit after tax (PAT) of INR 54.1 Cr. The growth rate for this period was over three times that of the median for FMCG companies in India.
This financial upturn is part of a broader trend within Honasa Consumer Ltd., as its diverse portfolio including Dr Sheths, Ayuga, and BBlunt continues to achieve market-beating growths.
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