Ghazal Alagh-led Mamaerth parent company Honasa Consumer Ltd has reported a remarkable 265% year-on-year increase in its net profit, reaching Rs 26 crore for the quarter ending December 31, 2023.
Notably, the company also witnessed a 28% jump in revenue, reaching Rs 488 crore in the same period.
The company's EBITDA also saw a significant rise of 192% from the previous year, indicating a strong and efficient operational performance.
However, the company experienced a decline in revenue and profit on a quarter-on-quarter basis. Mamaearth's revenue from operations decreased by 1.62% to Rs 488 crore in Q3 FY24, down from Rs 496 crore in Q2 FY23. Additionally, Mamaearth's profits dropped by 11.9% to Rs 25.9 crore in Q3 FY24, from Rs 29.4 crore in Q2 FY24.
Expansion and growth
The company said it has witnessed notable growth in the beauty and personal care sector. It has scaled and launched new categories, such as Mamaearth colour cosmetics, which has now reached an annual recurring revenue (ARR) of over Rs 150 crore.
"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 colorcare 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 CEO, HCL.
Mamaearth saw a significant increase in household penetration for its facewash and shampoo products.
The company's effective consumer engagement strategies, including impactful campaigns and product innovations, have played a crucial role in this success. Additionally, the launch of 122 new products in the calendar year 2023, driven by data-led innovation, has further contributed to the company's growth.
Omnichannel distribution expansion
Honasa Consumer has made significant strides in expanding its omnichannel distribution, now boasting over 1.7 lakh retail touchpoints. This expansion, which represents a 37% year-on-year increase, has been instrumental in growing the company's market share in key product categories.
The company's presence in modern trade has also grown, with products available in over 8000 stores across 31 chains.
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