Mamaearth share price jumps 10% after Q2 net profit doubles to ₹30 crore; Jefferies raises target on stock
₹387.65 apiece on the BSE. Honasa Consumer, the parent company of digital skincare firm Mamaearth, reported a net profit of ₹30 crore in Q2FY24, which doubled from the same period last year. Its revenue from operations grew 21% to ₹496 crore.
Read here: Mamaearth Q2 Results: Honasa Consumers net profit doubles to ₹30 crore in first results post listing, revenue up 21% The direct-to-consumer (D2C) unicorn’s revenue grew 33% in the first half of FY24 when the median growth of the fast-moving consumer goods (FMCG) industry stood at 9%. “Honasa has been able to deliver market-beating growth and constantly improve the profitability portfolio of the company. Our business has grown by 33 percent Y-o-Y in H1FY24 which is 3.8 times the median growth of FMCG companies in India," said Varun Alagh, Chairman and CEO.
Honasa Consumer continues to operate at a negative working capital of minus 5 days in H1FY24. The company’s offline distribution increased 47% YoY to 1,65,937 outlets. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Honasa Consumer’s Q2 EBITDA grew 53% YoY to ₹40 crore, which was 25% above Jefferies’ estimates, aided by a oneoff reversal of ESOP costs due to scale-down of Momspresso business.
Adjusted for this, EBITDA grew 35% YoY, 11% above estimates. The beat was led by better margin expansion, even as revenue was in-line. EBITDA margin expanded 170 bps YoY to 8.1%, its highest ever.
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