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Honasa Consumer Ltd. net profit grows 264% YoY in Q3FY24 at Rs 26 crore

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Honasa Consumer’s sales during the period grew by 28% year-on-year and like-for-like revenue grew by 31%

New Delhi: Honasa Consumer Ltd. (HCL) has reported a strong performance in the third quarter (Q3) of financial year (FY) 2024 with revenue growth of 28% and PAT growth of 264% YoY at Rs 26 crore.

The company has demonstrated market-beating growth and outperforming peers, underscoring its commitment to gaining a share of the beauty and personal care industry, led by innovation and strategic market expansion, the company said in a release on Friday.

The company’s Q3 FY24 consolidated revenue stood at Rs488 crore and Q3 FY24 consolidated EBITDA grew by 192% year-on-year at Rs 34.5 crore, increasing 397 bps YoY.

Its sales in the period grew by 28% year-on-year and like-for-like revenue grew by 31% (excluding Just4Kids business). Its business continues to be capital efficient, with a negative working capital cycle of minus 6 days.

Business Overview

  • Continued growth momentum in Q3 with improving profitability
  • Built and scaled new categories like Mamaearth color cosmetics which is now a Rs 150 crore + ARR category
  • With strong purpose-driven initiatives, Mamaearth continues to be one of the most loved brands. Mamaearth grew its household penetration of facewash by 280bps and of shampoo by 110 bps in 2 years (MAT Sep-23 compared with MAT Sep-21)
  • Younger brands continue to grow, with The Derma Co achieving EBITDA profitability
  • 122 new products launched in CY23, with key innovations performing well. With data-led approach to innovation, Rosemary hair-care ranged scaling up, achieving an ARR of INR 50 Cr+ in ~6 months of launch
  • Continue to strengthen and expand omnichannel distribution with over 1.7 lakh retail touchpoints, increasing distribution by 37% YoY. 9MYTD YoY offline market-share increase of 80 bps in face-washes and 40 bps in shampoos
  • Growing Modern Trade presence, in 8000+ stores across 31 chains

“The Q3 results is a testimony of our deep understanding of the beauty market in India. As we move ahead to capture this market further, our innovation-driven brand building playbook uniquely positions us to identify many opportunities to continue our growth trajectory,” Varun Alagh, Chairman and CEO, HCL said.

As per the release, four out of six brands from the company’s portfolio are already in the Rs 150 crore ARR club. “Having built color care 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,” Alagh added.

The digital-first HCL was founded by new parents Varun Alagh and Ghazal Alagh in 2016 with the launch of Mamaearth.

Today, HCL is a digital-first beauty and personal care publicly listed company with a portfolio of six brands–Mamaearth, The Derma Co., Dr Sheth’s, B Blunt, Aqualogica and Ayuga.

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