Honasa Consumer, the parent company of the skincare brand Mamaearth, has reported a 21% increase in revenue, reaching Rs 471 crore for the fourth quarter (Q4) of the fiscal year, compared to the same period last year. This growth comes despite weak demand in the retail sector. The company also recorded a net profit of Rs 30 crore for Q4, a significant turnaround from a loss of Rs 162 crore in the year-ago period.
Financial Highlights
- Revenue Growth: 21% increase to Rs 471 crore
- Net Profit: Rs 30 crore, up from a Rs 162 crore loss
- EBITDA Margins: Improved by 780 basis points year-on-year
Market Performance
Mamaearth shares experienced a 2% decrease, closing at Rs 418 apiece on Thursday. Despite this dip, the company's overall market position remains strong due to its consistent growth and profitability improvements. In a strategic move to enhance its capabilities, Honasa Consumer has acquired the formulations expertise, research and development lab, and a small manufacturing facility from Cosmogenesis Cosmetics, a Thane-based company, for Rs 4 crore.'
CEO's Statement
Varun Alagh, Chairman and CEO of Honasa Consumer, expressed his satisfaction with the company's performance:
"As we reflect on the quarter and the year, we are extremely happy to share that despite industry headwinds, Honasa has demonstrated remarkable resilience and growth for the quarter and fiscal, with a robust LFL growth of 23.3% for the quarter and 31.6% annually. We have stayed committed to delivering growth, improving profitability, and increasing our distribution network. Mamaearth's unwavering popularity among consumers has been a key driver of our continued success, while The Derma Co is catching up and has recently achieved an ARR of Rs 500 crore plus."
Conclusion
Honasa Consumer's impressive financial performance in Q4 underscores its strategic initiatives and market adaptability. The company's focus on innovation, market expansion, and strategic acquisitions has fortified its position in the beauty and personal care industry.
