Honasa Consumer Reports 23% Growth And Highest Ever Quarterly PAT At INR 30 CR

2024-06-16 07:34:28 Business

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Gurugram, May 23rd, 2024: Honasa Consumer Ltd., is proud to share its financial performance for the quarter ending March 31, 2024, and for the fiscal year FY24. Demonstrating resilience and agility, the company has witnessed revenue from operations grow for the quarter at 21.5% year-on-year (23.3% like-for-like) and for the year at 28.6% year-on-year (31.6% like-for-like). With a 780-bps improvement in EBITDA margins year-on-year, Honasa Consumer clocked its highest ever quarterly Profit After Tax (PAT) of INR 30 Cr. By consistently outpacing market growth, the company reaffirms their dedication to innovation and strategic market expansion, thereby strengthening their presence in the beauty and personal care industry.

Sharing his thoughts on the business performance in Q4FY24, Varun Alagh, Chairman and CEO, Honasa Consumer, comments, "As we reflect on quarter and year, we are extremely happy to share that despite industry headwinds, Honasa has demonstrated remarkable resilience and growth for the quarter and fiscal, with a robust LFL growth of 23.3% for the quarter and 31.6% annually. 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 INR 500 Cr+ highlighting our ability to craft and scale new-age beauty brands. Going forward, our focus remains on seizing untapped opportunities in the beauty landscape by tailoring brands and creating products that resonate with next-gen Indian consumers. Through our House of Brands approach, purpose-driven strategy, and placing emphasis on R&D and innovation, we aim solidify our position as frontrunners in the ever-changing BPC segment".

Financial Overview

Q4 FY24 consolidated revenue stood at INR 471 Cr
Q4 FY24 sales grew by 21.5% year-on-year (23.3% like-for-like)
Q4 FY24 consolidated EBITDA improved by by 780 bps at INR 33 Cr
Q4 FY24 clocked highest ever PAT at INR 30 Cr for the quarter and INR 111 Cr for FY24
Delivered a strong FY24 performance with 28.6% YoY growth (31.6% like-for-like)
Business continues to be capital efficient, with a negative working capital cycle of minus 13days

Business Overview

Continued growth momentum in Q4 with increasing profitability
As per Euromonitor, Mamaearth's 3X faster YoY (CY23-o-CY22) GMV growth outpaces its competitors (Other Top-14 BPC brands)
Mamaearth reached 188,377 FMCG retail outlets in India as of March '24, increasing distribution up by 34% YoY
New products accounted for around 18% of FY24 Revenue from Operations
Using our unique House of brands strategy, Honasa aims to dominate the fast-evolving categories such as sunscreens. As per Honasa's internal estimates, Honasa products command 30%+ market-share in most online channels in sunscreens
Tapping the ever-evolving category of color cosmetics, Honasa has launched Staze to redefine the beauty landscape and address the need gaps of the next-gen consumers

UNIQUE PLAYBOOK OF BPC BRANDS LEADING THE CHARGE

Mamaearth has solidified its position in the hearts of consumers and outpaced its competition by threefold in Year-on-Year GMV growth (CY23-o-CY22, as per Euromonitor, comparison with Other Top-14 BPC brands). With increasing household penetration across India, particularly notable in the face wash and shampoo categories, the brand has resonated deeply with diverse population segments Key innovations, such as the Hibiscus and Beetroot product line-ups, coupled with the brand's entry into the personal wash category, have boosted its presence.

Demonstrating an exceptional growth, The Derma Co scaled to an impressive annual run rate of INR 500 Cr+ in the final quarter. As a pioneer in category development within the actives space, the brand has introduced format and ingredient-based innovations across multiple categories including serums and sunscreens.

Our achievements, both on the business and financial front, in this quarter and for the fiscal year emphasizes our dedication to develop and scale each brand within our portfolio through targeted, consumer-oriented approach, setting a new high in brand enhancement and market presence.

DATA-BASED INNOVATION AT THE HEART OF SUCCESS

In the final quarter of FY24, Honasa Consumer Limited continues to exemplify the strength of its innovation strategy, deeply rooted in current trends and data-driven insights, as a cornerstone of its robust performance.

Addressing the ever-evolving consumer needs, Mamaearth entered into the personal wash segment with a goal to capture a portion of the INR 25,000 Crore personal wash market. The brand also leads in innovation both in terms of formats and ingredients, carving out a distinct niche in the active-based products market. Emerging brands like Aqualogica, Dr. Sheth's, and BBlunt continue to distinguish themselves through innovative products boasting strong claims that resonate well with consumers.

Drawing upon our expertise in data-driven innovation and a customer-focused mindset, we launched Staze, an inspirational color cosmetic brand targeting Gen-Z consumers, presenting a range of cost-effective and trendy beauty alternatives.

This quarter, standout innovations such as the Mamaearth Hibiscus Range, Mamaearth Beetroot Hydraful Sunscreen, The Derma Co 1% Hyaluronic Long Lasting Sunscreen, Aqualogica illuminate+ Dewy Sunscreen, Dr. Sheth's Gulab & Glycolic Acid Serum, and BBlunt Dry Shampoo have taken the lead. These data-driven product innovations have played a significant role in driving growth, with new offerings contributing approximately 18% to FY24 Revenue from Operations. Our unwavering commitment to research and development, coupled with a relentless focus on innovation, continues to yield fruitful results for the company.

Leveraging the power of our House of brands strategy, we are committed to establishing our dominance in swiftly evolving sectors like Sunscreens. Throughout the calendar Year 23, we introduced 122 new products (NPDs). These innovations not only resonated deeply with our discerning consumers but also made a substantial contribution to our revenue.

SHAPING A FUTURE-POSITIVE TOMORROW

The release of Honasa's first-ever impact report underscores not only its unwavering commitment to Environmental, Social, and Governance (ESG) principles but also showcases our heartfelt mission to ignite, steer and sustain meaningful conversations on beauty beyond business, inspired by goodness.

Our purpose-driven initiatives have made significant strides in advancing our mission to create positive change and impact. For instance, While Mamaearth's Plant Goodness initiative has led to the production of over 12,000 tons of fruit, generating an economic value exceeding INR 20 crore, The Derma Co's Young Scientist program has successfully engaged more than 20,000 students, improving their knowledge by over 42%. Contributing back to the society, Aqualogica's Water For All project has saved 400+ hours daily, focusing 100% on women-led interventions. Additionally, BBlunt Shine Academy has certified over 10,000 women in different vocational courses. The introduction of the brand purpose for Dr. Sheth's, 'Healthy India, Healthy You', not only strengthens our commitment to meaningful societal engagement but also extends our reach to the remote corners of India, promoting health and well-being across the nation.

In essence, Honasa remains steadfast in its dedication to driving positive change, embracing beauty as a force for good, and continuing to lead the charge towards a healthier, more inclusive future for all.

Alongside, our dedication to robust corporate governance remains unwavering, with a board comprised of 50% independent members, meticulous auditors, rigorous internal audit procedures, the adoption of ERP/DMS-SFA systems, and a proactive approach to gender diversity, with 53% female representation in our workforce. This commitment is further strengthened by the prestigious recognition of Honasa Consumer Limited as a #GreatPlaceToWork for the fourth year in a row, affirming our dedication to creating an inclusive and thriving workplace culture while being true to our pursuit of corporate governance.

As we progress, Honasa Consumer will uphold its commitment to deliver sustained growth and profitability for all its stakeholders, ensuring a future characterized by value creation, positive impact, and shared success.

ABOUT HONASA CONSUMER LTD

Honasa Consumer Limited is the largest digital-first beauty and personal care company with a diverse portfolio of seven brands. Uniquely positioned to capture the growth trends shaping in the BPC market, the company is building brands through on trend data-based innovation and strong omnichannel distribution. Driven by purpose, Honasa Consumer Limited is committed to serving its consumers and the society for a better tomorrow.