On Friday, Honasa Consumer, the company behind Mamaearth, announced a significant surge of 265% in its consolidated net profit to Rs 26 crore for the quarter ending in December, compared to Rs 7.1 crore from the previous year.
Revenue from operations also saw a notable 28% year-on-year increase to Rs 488 crore in the third quarter, up from Rs 382 crore in the corresponding quarter of the previous year.
The Gurugram-based startup, which entered the market in 2023 amid valuation discussions, posted operating revenue of Rs 488.2 crore, marking a 28% increase from the previous year. In Q3 FY23, Honasa had recorded operating revenue of Rs 382.2 crore.
Sequentially, the company operating Mamaearth witnessed a 2% decrease in operating revenue from Rs 496.1 crore. Additionally, its net profit declined by 12% from Rs 29.8 crore on a quarter-on-quarter (QoQ) basis.
During an analyst call, Mamaearth CEO Alagh noted that the first half (H1) tends to be stronger for the company compared to the second half (H2), with facewash, sunscreen, creams, and shampoos being core products.
In the mentioned quarter, the company achieved a sales growth of 28% year-on-year (YoY).
In our portfolio, the company sold approximately 1 million color care units, reaching an ARR of Rs 150 crore. Meanwhile, The Derma Co. achieved Ebitda positivity year-to-date.
“Four out of six brands from our portfolio have already surpassed the Rs 150 crore ARR milestone, which underscores our capabilities. The success in building color care with Mamaearth demonstrates our capacity to establish new categories and the brand’s adaptability. Moving forward, our focus remains on purpose-driven brand development, innovation, and expanding distribution,” stated Varun Alagh, Chairman and CEO of HCL.”
“In the quarter, employees of the holding firm exercised 3,695,191 stock options. Meanwhile, the promoters of Momspresso resigned, leading to the reversal of a share-based payment expense of Rs 47.47 million.”
Here are the key points:
- Consolidated revenue for Q3 FY24 reached Rs 488 Cr.
- Q3 FY24 sales saw a 28% year-on-year increase.
- Consolidated EBITDA for Q3 FY24 surged by 192% year-on-year to Rs 34.5 Cr, marking a 397 bps YoY rise.
- Q3 FY24 consolidated net profit rose by approximately 264% year-on-year to Rs 26 Cr.
- Like-for-Like Revenue growth in Q3 was 31% (excluding Just4Kids business).
- YTD FY24 performance was robust with a 31% YoY growth in revenue, EBITDA growth at around 305%, reaching Rs 104 crore EBITDA, and PAT growth of about 642% to Rs 80 crore.
- The business maintains capital efficiency, boasting a negative working capital cycle of minus 6 days.
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