Marico-Owned Beardo Slips Into The Red, Posts INR 6.1 Cr Loss In FY23

Men’s grooming D2C brand Beardo, which is owned by Marico, slipped into the red in the financial year ended March 31, 2023. The Ahmedabad-based D2C brand reported a net loss of INR 6.1 Cr in the financial year 2022-23 (FY23) as against a net profit of INR 75.5 Lakh in the previous fiscal year. 

Beardo’s revenue from operations rose 12.3% to INR 106.6 Cr in FY23 from INR 94.8 Cr in FY22, as per Marico’s annual report for the year ended March 31, 2023.

The D2C brand generates operating revenue from sales of its products. Including other income, Beardo reported a total revenue of INR 106.9 Cr in the year under review as against INR 95.6 Cr in the previous fiscal year. 

However, the growth in Beardo’s expenditure outpaced the rise in operating revenue. Total expenditure stood at INR 115.3 Cr in FY23, a rise of 20% from INR 96.1 Cr in FY22. 

Marketing expenses accounted for over 35% of the total expenditure, standing at INR 41.3 Cr in FY23 as against INR 40.5 Cr in the previous fiscal year.

The startup earned around INR 2.6 in operating revenue on every INR 1 it spent on marketing.

Beardo spent INR 12.6 Cr on employee benefit expenses in FY23, a marginal increase from INR 10.5 Cr in the previous fiscal year. 

Employee benefit expenses comprise employee wages, PF contribution, gratuity, among others. 

Beardo’s EBITDA margin deteriorated to -6.24% from 0.29% in FY22. 

Beardo, founded in 2015 by Ashutosh Valani and Priyank Shah, provides hair and body care products for men such as beard washes, beard balm, beard and hair growth oil, serum, face washes, beard and hair wax, soaps, beard combs, among others.

Marico acquired a 45% stake in Beardo in 2017. Following this, it completed a 100% stake acquisition in the D2C brand in 2020. 

Beardo competes against the likes of Bombay Shaving Company, The Man Company, Bold Care, among others.