Honasa Consumer Pvt. Ltd - which retails products under Mamaearth and The Derma Co brands - stayed profitable in financial year 2022 with revenue nearing the Rs 1000 crore mark.
The company reported a net profit of Rs 19.8 crore in FY22, a 19.5% drop from Rs 24.6 crore reported in FY21, according to data obtained from business intelligence platform Tofler.
It's operating revenue more than doubled to Rs 943 crore in FY22 against Rs 460 crore in the previous fiscal. The company earned Rs 932 crore from sale of products while it made Rs 11.5 crore from sale of services.
However, it is important to note that Honasa Consumer made a few changes to its financials for FY21, which are visible in the latest FY22 filing. The company posted an expense of Rs 1,361.2 crore for FY21 due to change in fair valuation of preference shares, which is a non-cash expense.
The cost is an exceptional item (one-time expense) added into the P&L (profit and loss) statement because of a shareholders agreement’s clause which says that if the company cannot provide an exit to the investors, it will need to provide a buyout. So, when a company follows Indian Accounting Standard (Ind-As) rules, it is required to include the provision as an expense in the statement.
Honasa Consumer has a portfolio of close to 140 products under the Mamaearth brand, and more than 40 items under The Derma Co. The firm had also previously said that it has a vision of becoming a 'house of brands’.
Coming to expenses, the company’s expenditure on advertising and promotions grew 120% to Rs 391 crore in FY22 from Rs 178 crore in the fiscal before. Spends on marketing made up more than 40% of the total expenses.
Honasa Consumer’s employee expense grew 182% to Rs 79 crore in FY21 as the company doubled down on its growth. In the same financial year, the company raised a little over $52 million in its Series F funding led by Sequoia Capital, Sofina Ventures SA, and UAE based India focused fund Evolvence at a valuation of $1.07 billion.
Meanwhile, the company spent Rs 304.7 crore on purchases of stock-in-trade in FY22 against Rs 161 crore in the previous fiscal.
