MUMBAI: Honasa Consumer today announced its financial results for the quarter ending 31 December 2023. Q3 revenue grew by 28%. PAT grew by 264% YoY.
EBITDA margin is at 7.1% up 397 bps YoY. 9M YTD EBITDA exceeds Rs. 100 crore. PAT jumped seven times for the first nine months of FY24 (Rs. 80 crores). PAT for the quarter is Rs. 26 crores. (~264% YOY growth). Young brands it said continue to drive growth with The Derma Co. becoming EBITDA profitable. It also built a Rs. 150 Crore ARR in the Mamaearth color cosmetics category
Varun Alagh, Chairman and CEO, HCL said, “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. Four out of six brands from our portfolio are already in the INR 150 Crore ARR club and we see this as a testimony of our capabilities. 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.”
Q3 FY24 consolidated revenue stood at INR 488 crore.
Q3 FY24 sales grew by 28% year-on-year
Q3 FY24 consolidated EBITDA grew by 192% year-on-year at INR 34.5 crore, increasing 397 bps YoY
Q3 FY24 consolidated net profit grew by 264% year-on-year at 26 crore.
Q3 Like-for-Like Revenue growth by 31% (excluding Just4Kids business)
It delivered a 31% YoY growth with EBITDA growth at 305%, delivering Rs. 104 crore EBITDA; and PAT growth of 642% at Rs. 80 crore. Business it added continues to be capital efficient, with a negative working capital cycle of minus 6 days
Continued growth momentum in Q3 with improving profitability: Built and scaled new categories like Mamaearth color cosmetics which is now a 150r+ 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 a data-led approach Rosemary hair-care ranged scaled up, achieving an ARR of over Rs. 50 Crore in six months of launch said the company.
It also continues 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. It has a growing Modern Trade presence, in 8000+ stores across 31 chains
Mamaearth continued to solidify its position as one of India’s most beloved brands, achieving remarkable household penetration growth in face washes and shampoos across all population strata, as evidenced by industry reports from 2021 to 2023. Key campaigns like “Beautiful Ho Tum” and product-specific initiatives for Rosemary and Color Care have significantly bolstered our brand presence, supported by compelling visuals and high viewership numbers.
With its portfolio of color cosmetics products, and aided by effective consumer communication, Colorcare the company said has become a promising category, reaching INR 150 Crore ARR mark, with ~10 Lakh color care units sold in Q3FY24. This strategy’s success is visibly mirrored in the growth of our younger brands. The Derma Co. notably achieved an EBITDA positive status year-to-date, buoyed by products such as serums, sunscreens, and face wash. Aqualogica, Dr. Sheth’s, and BBlunt have done well it said. Aqualogica continues to strengthen as a brand with its continuously increasing brand searches; while Dr Sheth’s continues to build in multiple categories, with moisturisers growing in winters.
This quarter’s achievement underscores our commitment to nurturing each brand within our portfolio through targeted consumer-centric strategies, setting a new benchmark in brand building and market engagement.
Honasa said that it launched 122 new products (NPDs) in Calendar Year 23. These innovations not only resonated with our consumers but also contributed significantly to its revenue.
It said that its proprietary tools have been instrumental in identifying and incorporating newer ingredients, such as Rosemary. This focus on leveraging data for product innovation and responding swiftly to emerging trends continues to be a cornerstone of its strategy.
This quarter witnessed advancements in its omnichannel distribution strategy. In Modern Trade it said that it managed an expanded outlet reach and offtake growth. Meanwhile its overall Offline distribution continues to grow in reach. It said that it continues to gain market share in key distribution-driver categories of facewash and shampoo. In terms of its Exclusive Brand Outlets (EBOs) it opened its 100th store.
Additionally, its online partnerships have been strengthened further. Collaborations with platforms like Purplle and Meesho have year-on-year business growth, underscored by strategic banner placements and co-branding efforts it explains. The company said that this multi-faceted approach to distribution is a testament to itsr commitment to accessibility and customer reach, playing a crucial role in our Q3 accomplishments.
It also said that its persistent emphasis on Environmental, Social, and Governance (ESG) factors is evident through the recent achievement of ‘Great Place To Work‘ certification for the fourth consecutive year.
It explains that it has undertaken initiatives such as ‘We Plant Goodness,‘ ‘Plastic Positive,‘ the ‘Young Scientist Program,’ and the ‘Fresh Water for All Program,‘ aligning its brands with contributions to society.
Concurrently, its commitment to corporate governance remains steadfast it claims. It said that it has a 50% independent board, diligent auditors, internal audit processes, the implementation of ERP/DMS-SFA systems, and a proactive approach to gender diversity, with 53% female workforce.