Shares of Mamaearth parent Honasa Consumer soared nearly 10% in today’s early deals, reaching ₹474.90 apiece on the back of strong December quarter performance.
In Q3FY24, the company’s consolidated net profit has surged by 264% YoY to ₹26 crore. In the same period last year, the company posted a net profit of ₹7 crore. For the first nine months of the current fiscal year, its net profit has jumped by seven times to ₹80 crore.
In the December quarter, its consolidated revenue surged by 28% year-on-year to reach ₹488 crore. Furthermore, the consolidated EBITDA experienced remarkable growth, soaring by 192% YoY to ₹34.5 crore, marking an increase of 397 basis points.
The company launched 122 new products (NPDs) in calendar year 23, which has contributed significantly to its revenue growth, with new product developments accounting for an impressive percentage of its year-to-date revenue.
The company said in its earnings report that its key campaigns like “Beautiful Ho Tum" and product-specific initiatives for Rosemary and Color Care have significantly bolstered its brand presence, supported by compelling visuals and high viewership numbers.
With its portfolio of natural, long-lasting, and Made Safe certified color cosmetics products and aided by effective consumer communication, the company said colour care has become a promising category, reaching the ₹150 crore ARR mark with 10 lakh color care units sold in Q3 FY24.
“The Derma Co. notably achieved an EBITDA positive status year-to-date, buoyed by hero products such as serums, sunscreens, and face wash. Aqualogica, Dr. Sheth’s, and BBlunt have each seen significant successes in their respective categories. Aqualogica continues to strengthen as a brand with its continuously increasing brand searches, while Dr Sheth’s continues to build in multiple categories, with moisturizers growing in winter,” the company added.
Further, the company said it 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 basis points in facewashes and 40 basis points in shampoos.
Commenting on the business performance of Q3 FY24, Varun Alagh, Chairman and CEO of 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 ₹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 the versatility of the brand. As we move forward, the focus continues to be on purpose-based brand building, innovation, and distribution expansion,” Varun Alagh added.