Honasa Consumer Records 251% YoY Increase in Net Profit in Q3 FY24
- ByStartupStory | February 10, 2024
Omnichannel beauty and personal care (BPC) company Honasa Consumer has reported a significant 251% year-on-year (YoY) increase in net profit for the third quarter of FY24, driven by growing revenue and operational efficiencies. The company, which owns brands like Mamaearth, The Derma Co., and Aqualogica, among others, posted a net profit of Rs 25.9 crore for Q3 FY24, compared to Rs 7.1 crore in the same period last year.
Honasa’s revenue for the quarter stood at Rs 488 crore, marking a 27.8% rise from Rs 382 crore in the corresponding quarter of the previous year.
Commenting on the company’s performance, Honasa CEO Varun Alagh stated, “Four out of six brands from our portfolio are already in the Rs 150 crore ARR club, and we see this as a testimony of our capabilities. Having built colour care with Mamaearth showcases our ability to build new categories and the versatility of the brand. As we move forward, the focus continues to be on purpose-based brand building, innovation, and distribution expansion.”
During the quarter, the company witnessed a 35% increase in volumes, while its EBITDA or gross profit margins recorded a 7.1% growth, a 192% YoY increase. However, compared to Q2 of the current fiscal, Honasa’s Q3 performance saw a decline in both revenue and net profit—by 1.6% and 12.5%, respectively.
At the close of trading on Friday, Honasa stock was up 4.45%, trading at Rs 435 apiece on the National Stock Exchange. In addition to its online presence, the omnichannel company is selling at 1,77,366 FMCG retail outlets in India, marking a 37% YoY increase in distribution. It is also present in 8,000-plus stores across 31 modern trade chains. Honasa highlighted that online growth was driven by platforms with a strong presence in Tier II locations. The company also noted that the BPC products market in India is expected to grow more than 11% on a CAGR basis between 2022-27.
Follow Startup Story
Related Posts
