Gurgaon| tenth February 2024: Honasa Consumer Ltd. in the present day introduced its financial results for the quarter ending December 31, 2023. Our enterprise delivered a powerful efficiency in Q3 with income progress of 28% and PAT progress of 264% YoY. The firm has demonstrated market-beating progress and outperforming friends, underscoring its dedication to realize share of the magnificence and private care trade, led by innovation and strategic market growth.
Commenting on the enterprise efficiency of Q3 FY24, Varun Alagh, Chairman and CEO, HCL, mentioned:
“The Q3 results is a sworn statement of our deep understanding of the magnificence market in India. As we transfer forward to seize this market additional, our innovation-driven model constructing playbook uniquely positions us to determine many alternatives to proceed our progress trajectory. Four out of six manufacturers from our portfolio are already in the INR 150 Cr ARR membership and we see this as a sworn statement of our capabilities. Having constructed shade care with Mamaearth showcases our capacity to construct new classes and flexibility of the model. As we transfer ahead, focus continues to be on purpose-based model constructing, innovation and distribution growth.”
Financial Overview
Q3 FY24 consolidated income stood at INR 488 Cr.
Q3 FY24 gross sales grew by 28% year-on-year
Q3 FY24 consolidated EBITDA grew by 192% year-on-year at INR 34.5 Cr, rising 397 bps YoY
Q3 FY24 consolidated internet revenue grew by ~264% year-on-year at 26 Cr.
Q3 Like-for-Like Revenue progress by 31% (excluding Just4Kids enterprise)
Delivered a powerful YTD FY24 efficiency with 31% YoY progress with EBITDA progress at ~305%, delivering INR 104 Cr EBITDA; and PAT progress of ~642% at INR 80 Cr
Business continues to be capital environment friendly, with a damaging working capital cycle of minus 6 days
Business Overview
Continued progress momentum in Q3 with enhancing profitability
Built and scaled new classes like Mamaearth shade cosmetics which is now a 150r+ ARR class
With robust goal pushed initiatives, Mamaearth continues to be one among the most beloved manufacturers. Mamaearth grew its family penetration of facewash by 280bps and of shampoo by 110 bps in 2 years (MAT Sep-23 in contrast with MAT Sep-21)
Younger manufacturers proceed to develop, with The Derma Co reaching EBITDA profitability
122 new merchandise launched in CY23, with key improvements performing properly. With data-led strategy to innovation, Rosemary hair-care ranged scaling up, reaching an ARR of INR 50 Cr+ in ~6 months of launch
Continue to strengthen and increase omnichannel distribution with over 1.7 lakh retail touchpoints, rising distribution by 37% YoY. 9MYTD YoY offline market-share enhance of 80 bps in face-washes and 40 bps in shampoos
Growing Modern Trade presence, in 8000+ shops throughout 31 chains
CONSUMER FOCUSED BRAND BUILDING PLAYBOOKS
Mamaearth continued to solidify its place as one among India’s most beloved manufacturers, reaching exceptional family penetration progress in face washes and shampoos throughout all inhabitants strata, as evidenced by trade studies from 2021 to 2023. Key campaigns like “Beautiful Ho Tum” and product-specific initiatives for Rosemary and Color Care have considerably bolstered our model presence, supported by compelling visuals and excessive viewership numbers.
With its portfolio of pure, long-lasting and Made Safe licensed shade cosmetics merchandise, and aided by efficient client communication, Colorcare has change into a promising class, reaching INR 150 Crore ARR mark, with ~10 Lakh shade care items bought in Q3FY24. This technique’s success is visibly mirrored in the progress of our youthful manufacturers. The Derma Co. notably achieved an EBITDA optimistic standing year-to-date, buoyed by hero merchandise similar to serums, sunscreens, and face wash. Aqualogica, Dr. Sheth’s, and BBlunt have every seen important successes of their respective classes. Aqualogica continues to strengthen as a model with its constantly rising model searches; whereas Dr Sheth’s continues to construct in a number of classes, with moisturizers rising in winters.
This quarter’s achievement underscores our dedication to nurturing every model inside our portfolio by focused consumer-centric methods, setting a brand new benchmark in model constructing and market engagement.
ON TREND DATA-BASED INNOVATIONS
In the third quarter, Honasa Consumer Ltd. demonstrated the energy of its on-trend, data-based innovation technique, which was a major driver of our efficiency. We launched 122 new merchandise (NPDs) in Calendar Year 23. These improvements not solely resonated with our customers but in addition contributed considerably to our income, with new product developments accounting for a formidable proportion of our year-to-date income.
Among the standout improvements have been merchandise with robust claims which were notably well-received in the market. Our proprietary instruments have been instrumental in figuring out and incorporating newer elements, similar to Rosemary, which has seen a considerable uptick in search quantity, indicating a rising client curiosity and acceptance. This give attention to leveraging information for product innovation and responding swiftly to rising tendencies continues to be a cornerstone of our technique, underpinning our success in Q3 and reinforcing our place as a frontrunner in the market.
CONTINUED STRENGTHENING OF OMNICHANNEL DISTRIBUTION
This quarter witnessed important developments in our omnichannel distribution technique, taking part in a key think about our continued success and market penetration. In Modern Trade, we now have seen strong year-on-year income progress, with an expanded outlet attain and notable offtake progress, whereas our general Offline distribution continues to develop in attain. We proceed to realize market share in key distribution-driver classes of facewash and shampoo. Our Exclusive Brand Outlets (EBOs) reached a major milestone with the opening of our a centesimal retailer.
Additionally, our on-line partnerships have been strengthened additional. Collaborations with platforms like Purplle and Meesho have yielded substantial year-on-year enterprise progress, underscored by strategic banner placements and co-branding efforts. This multi-faceted strategy to distribution is a testomony to our dedication to accessibility and buyer attain, taking part in a vital position in our Q3 accomplishments.
FOCUS ON ESG
Our persistent emphasis on Environmental, Social, and Governance (ESG) elements is clear by the current achievement of ‘Great Place To Work’ certification for the fourth consecutive yr.
As a purpose-driven group, we now have undertaken initiatives similar to ‘We Plant Goodness,’ ‘Plastic Positive,’ the ‘Young Scientist Program,’ and the ‘Fresh Water for All Program,’ aligning our manufacturers with impactful contributions to society. The introduction of the model goal for Dr. Sheth’s additional solidifies our dedication to significant societal engagement.
Concurrently, our dedication to strong company governance stays steadfast, that includes a 50% unbiased board, diligent auditors, inner audit processes, the implementation of ERP/DMS-SFA programs, and a proactive strategy to gender range, with 53% feminine workforce. These initiatives collectively mirror our holistic dedication to sustainability, moral enterprise practices, and accountable company citizenship. This dedication underscores our dedication to sound company governance practices and aligns with our values of range and moral conduct.
Going ahead, Honasa Consumer will stay dedicated to delivering sustained progress and profitability for all its stakeholders.
