Honasa Consumer, the recently listed parent company of Mamaearth, delivered strong financial numbers in its first half (H1) report ending 30 September 2023. The result boosted stock prices, to rally as high as 20 per cent to hit the upper-circuit.
The digital first brand reported its H1 revenue to Rs 961 crore from operations, 33 per cent year-on-year (YoY) whereas like-for-like growth was 36 per cent.
This was driven by volume growth of 35 per cent YoY. With a gross profit of 70 per cent, the firm achieved earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 70 crore with 400 per cent YoY growth and profit after tax (PAT) grew 1,377 per cent YoY at Rs 54 crore.
With respect to the second quarter of FY24, the company’s revenue increased to 496 crore or 21 per cent YoY owing to volume growth In this period, EBITDA increased to 53 per cent to 40 crore and PAT at Rs 29 crore with 94 per cent YoY growth.
“I am proud of the Q2 and H1 FY24 results. The beauty market in India is brimming with opportunities, and we are receiving a lot of consumer love for our on trend innovations across brands. Honasa has been able to deliver market beating growths and constantly improve the profitability portfolio of the company. Our business has grown by 33 per cent YoY in H1 FY24 which is 3.8 times the median growth of FMCG companies in India,” said Varun Alagh, Chairman and CEO, Honasa Consumer.
“Mamaearth, our largest brand has entered the Top 15 BPC brands in India, overtaking many legacy brands, as per a report by Jefferies. Our profits grew much faster than our revenues, with H1 PAT growing by 1,377 per cent to 54 crore. Dr Sheths has become the fourth brand from Honasa portfolio to enter the 150 Cr Club after Aqualogica and Derma company. We will continue to deliver on our commitments to our business, consumers, and investors,” added Alagh.
Honasa Consumer has evolved as the digital-first BPC company, offering a proposition of six brands. Mamaearth features in the ‘Top-15 BPC Brands’ in terms of retail spending for 2022, overtaking many legacy brands (as per a report by Jefferies). The Derma Co., the second brand from the Honasa Consumer portfolio, has achieved an ARR of Rs 380 crore and Aqualogica, the third brand has become the fastest to achieve an ARR of Rs 180 crore.
The acquired brands Dr. Sheths and Bblunt also have displayed strong growth trajectories growing 30 times and 3 times respectively since acquisitions.
In its stock performance, including upper-circuit hit of 20 per cent on Thursday trading session. The stock has delivered 33 per cent returns after listing on 7 November 2023.
