Mamaearth Leads Honasa's Profitability Demonstrating resilience and agility, the parent company of Mamaearth, Honasa Consumer Limited, witnessed revenue from operations grow for the quarter at 21.5 per cent year-on-year and for the year at 28.6 per cent YoY
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With a 780-bps improvement in EBITDA margins year-on-year (YoY), Honasa Consumer clocked its highest ever quarterly profit after tax (PAT) of INR 30 crore and reported an annual PAT of INR 111 crore.
"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 per cent for the quarter and 31.6 per cent annually," said Varun Alagh, chairman and CEO, Honasa Consumer, on the business performance in Q4FY24.
Market Performance Analysis of Mamaearth
The company's rapid growth and increasing market share has well established it as a market giant. The data indicates that Mamaearth's growth is three times faster than its top competitors, with a significant 76 per cent increase compared to the 21 per cent average of other leading brands. This remarkable upward trajectory highlights Mamaearth's successful strategies and consumer appeal.
Mamaearth's market share expansion is evident in the key categories it operates in. The brand has seen a YoY increase in value market share, with a +120 bps improvement for their facewash and a further +40 bps for their shampoo, as of March '24, representing a consistent and notable rise in Mamaearth's dominance in its market segments.
The brand's retail presence has also seen a positive trend, with a 34 per cent YoY increase in distribution across 1,88,377 FMCG retail outlets in India as of March '24. Additionally, Mamaearth has improved its shelf share among retailers, with facewash and shampoo categories seeing a +148 and +65 bps improvement, respectively. This suggests that Mamaearth is not only expanding its reach but also securing more visibility and preference on retail shelves.
The Rise of Dema Co
The Derma Co has scaled to an annual recurring revenue (ARR) upwards of INR 500 crore during Q4 FY24 and remarkably has remained profitable throughout the year. The snapshot shows ten-times the growth in search trends. From the timespan of March 2020 to March 2024, the company launched notable products, strategically focusing on active ingredients for skincare serums, evident from its product lineup.
Varun Alagh also added, "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 to solidify our position as frontrunners in the ever-changing BPC segment."
Strategic Acquisition for R&D Enhancement
Varun outlines a significant strategic move by the company to enhance its research and development (R&D) capabilities through the acquisition of Cosmogenesis' Labs. This acquisition is presented as a key step in strengthening the company's position in the Beauty and Personal Care industry.
Cosmogenesis' Labs is recognized for its expertise in five primary categories: skin care, hair care, bath & body, sun care cosmetics and color cosmetics. The acquisition is expected to bring over 25 years of industry experience to the company, particularly through the expertise of Rohini Monga, the founder of Cosmogenesis' Labs. Her background in working with top FMCG and new age BPC companies, along with her team's ability to create over 5,000 formulations, is highlighted as a valuable asset.
Alagh also emphasizes the state-of-the-art R&D center that comes with the acquisition. It boasts an experienced team capable of developing a wide range of products, along with a nano manufacturing facility. The 'Facility Snapshots' section provides visual confirmation of the sophisticated research facilities that are part of the deal. The deal is in its final stages and is expected to close within the next 4-6 weeks.
