Honasa FY24: Mamaearth Parent Turns Profitable For Full Fiscal Year

Honasa Consumer Ltd, the parent entity of D2C brand Mamaearth, has posted a consolidated net profit of INR 30.47 Cr in the fourth quarter of the fiscal year 2023-24 (FY24), the company disclosed today.  

The startup’s earnings before interest, taxes, depreciation and amortisation (EBITDA) also grew 7% YoY to INR 33.8 Cr in the quarter. Its EBITDA margin improved significantly reaching 7.1% from 1.5% in the year-ago period.

More importantly, for the full fiscal year of FY24, the startup’s profits stood at INR 110.52 Cr as against a loss of INR 150.96 Cr it incurred in the previous fiscal. 

Its EBITDA for the full fiscal stood at a positive INR 111 Cr against the EBITDA loss of INR 151 Cr in FY23. 

As for Q4, the net profit saw a 17% quarter-on-quarter (QoQ) increase from previous quarter’s INR 25.9 Cr. From a year-on-year lens, the company has been able to turn around from an INR 161.7 Cr loss it made in Q4 FY23. 

Honasa’s operating revenue zoomed 21% YoY to INR 471.09 Cr in Q4 FY24 from INR 387.8 Cr in the year-ago quarter. But this marked a 3% sequential decline from Q3 FY24’s operational revenue of INR 488.2 Cr. Honasa’s operating revenue for the fiscal also increased 30% to INR 1,919.6 Cr from INR 1,492.7 Cr.

The company’s total expenditure in the quarter also rose 12% to INR 450.88 Cr from INR 400.1 Cr in Q4 FY23. Purchase cost was the biggest expenditure and stood at INR 149.56 Cr in Q4 FY24 against INR 118.18 Cr in the year-ago quarter.

The company attributed its improved financial health and profits to increased traction for its brands other than its flagship brand, Mamaearth. Besides Mamaearth, the company operates The Derma Co, Aqualogica, and Ayuga in its portfolio. It also acquired brands like Dr. Sheth’s, BBlunt, and Momspresso over the years.

Honasa’s House Of Brands In FY24

“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’s is catching up and has recently achieved an ARR of Rs 500 crore plus,” Honasa’s cofounder and CEO Varun Alagh said during the investor call.

While Derma Co scaled to an annual recurring revenue (ARR) of INR 500 Cr during the quarter, the company said it remained profitable throughout the year. The company anticipates to hit an ARR of INR 1,000 Cr for Derma Co within 3-5 years.

Further, it also anticipates that its other brands Aqualogica and Dr. Sheth’s will touch an ARR of INR 500 Cr and claimed BBlunt will touch INR 250 Cr in the same time frame.

For Mamaearth, it focused on entering new categories during the quarter. For instance, it forayed into the personal wash space in March with moisturising lotion soaps. For the entire fiscal, it said that new product launches contributed 18% to its total revenues. 

Continuing on its “house of brands expansion” spree, the startup also announced entering into a binding deal for the acquisition of Thane-based skincare company Cosmogenesis Labs for INR 4 Cr. The deal is expected to close in the next 4-6 weeks.

Cosmogenesis founder Rohini Manoj will also be joining Honasa’s research and development team. “Ms. Rohini and her team of scientists will enhance our R&D capability with her experience of creating over 5,000 formulations in Beauty and Personal Care Category,” the company said in its investor presentation.