Profit before tax stood at Rs 34.72 crore in Q3 FY24, steeply higher than Rs 10.65 crore posted in Q3 FY23.

EBITDA stood at Rs 34 crore in Q3 FY24, registering a growth of 192% as compared with Rs 12 crore posted in the same quarter previous fiscal. EBITDA margin improved by to 7.1% in Q3 FY24 as against 3.1% in Q3 FY23.

Like-for-Like revenue grew by 31% (excluding Just4Kids business).

Colorcare has become a promising category reaching Rs 150 crore (annual recurring revenues) ARR mark with around 10 Lakh color care units sold in Q3FY24. This strategy’s success is visibly mirrored in the growth of our younger brands.

The Derma Co. notably achieved an EBITDA positive status year-to-date, buoyed by hero products such as serums, sunscreens, and face wash. Aqualogica, Dr. Sheth’s, and BBlunt have each seen significant successes in their respective categories. Aqualogica continues to strengthen as a brand with its continuously increasing brand searches. while Dr Sheth’s continues to build in multiple categories, with moisturizers growing in winters.

In the third quarter, the company has demonstrated the strength of its on-trend, data-based innovation strategy, which was a significant driver of its performance. The company has launched 122 new products (NPDs) in Calendar Year 23. These innovations not only resonated with our consumers but also contributed significantly to our revenue, with new product developments accounting for an impressive percentage of our year-to-date revenue.

This quarter witnessed significant advancements in its omnichannel distribution strategy, playing a key factor in continued success and market penetration. In modern trade, the company has seen robust year on year revenue growth, with an expanded outlet reach and notable offtake growth, while our overall Offline distribution continues to grow in reach. The firm continues to gain market share in key distribution-driver categories of facewash and shampoo. Its Exclusive Brand Outlets (EBOs) reached a significant milestone with the opening of its 100th store .

Additionally, its online partnerships have been strengthened further. Collaborations with platforms like Purplle and Meesho have yielded substantial year on year business growth, underscored by strategic banner placements and co-branding efforts. This multi-faceted approach to distribution is a testament to its commitment to accessibility and customer reach, playing a crucial role in our Q3 accomplishments.

Varun Alagh, chairman and CEO, Honasa Consumer, said, “The Q3 results is a testimony of our deep understanding of the beauty market in India. As we move ahead to capture this market further, our innovation-driven brand building playbook uniquely positions us to identify many opportunities to continue our growth trajectory.

Four out of six brands from our portfolio are already in the Rs 150 crore ARR club and we see this as a testimony of our capabilities. Having built color care with Mamaearth showcases our ability to build new categories and versatility of the brand. As we move forward, focus continues to be on purpose-based brand building, innovation and distribution expansion.”

Honasa Consumer is the largest digital-first beauty and personal care company with a diverse portfolio of six 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.

The scrip rose 3.54% to settle at Rs 432.75 on Friday 9 February 2024.