Honasa Consumer, which owns and operates Mamaearth, on Friday reported 265% growth in its consolidated net profit to Rs 26 crore for the quarter ended December. It was Rs 7.1 crore a year ago.
Revenue from operations in the third quarter increased 28% year-on-year (YoY) to Rs 488 crore, compared with Rs 382 crore in the same quarter of last year.
Consolidated EBITDA for the quarter jumped 192% YoY at Rs 34.5 crore in the reporting quarter, margins improved 397 basis points YoY to 7.1%.
The company built and scaled new categories like Mamaearth color cosmetics during the quarter, which is now a 150r+ ARR category. Mamaearth grew its household penetration of facewash by 280 bps and of shampoo by 110 bps in 2 years.
Younger brands continue to grow, with The Derma Co achieving EBITDA profitability. About 122 new products were launched in CY23.
“The Q3 results are 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, Honasa Consumer.
With the data-led approach to innovation, Rosemary hair-care ranged scaling up, achieving an ARR of Rs 50 crore within 6 months of launch. Four out of the company’s six brands are in the Rs 150 crore ARR club.
The company continued to strengthen and expand omnichannel distribution with over 1.7 lakh retail touchpoints, increasing distribution by 37% YoY.
The 9MYTD YoY offline market share saw an increase of 80 bps in face-washes and 40 bps in shampoos.
“As we move forward, the focus continues to be on purpose-based brand building, innovation, and distribution expansion,” Alagh said.
On Friday, Honasa Consumer shares closed 4.45% lower at Rs 435 on the NSE.