- Mamaearth's Q2 net profit doubled to ₹30 crore, showcasing a remarkable 93% YoY surge.
- The direct-to-consumer (D2C) unicorn witnessed a robust 21% growth in revenue, reaching ₹496 crore in the quarter.
- Despite being a digital-first brand, Mamaearth is strategically expanding its offline distribution, reaching 1,65,937 retail outlets in September 2023, marking a 47% YoY increase.
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Mamaearth, a digital-first skincare brand part of Honasa Consumer Ltd (NSE: HONASA), recently announced its financial performance in Q2 of the fiscal year 2023-24. The company's net profit surged to ₹30 crore, marking a 93% YoY growth and showcasing the brand's robust financial health.
This financial success comes after Mamaearth's recent listing on the stock exchanges, proving the brand's enduring popularity and market resilience. The direct-to-consumer (D2C) unicorn reported a substantial 21% increase in revenue, reaching ₹496 crore in the quarter.
Honasa Consumer's Chairman and CEO, Varun Alagh, expressed his enthusiasm about the outstanding performance, stating that "our business has grown by 33% YoY in H1 FY24, which is 3.8 times the median growth of FMCG companies in India."
What sets Mamaearth apart is its digital presence and its strategic expansion into offline distribution, reaching 1,65,937 retail outlets in September 2023. This marks a substantial 47% increase in offline distribution compared to the previous year, showcasing Mamaearth's commitment to reaching a broader consumer base.
Despite being a digital-first brand, Mamaearth is diversifying its advertising strategy. The brand witnessed a 22% growth in ad costs during Q2, reaching Rs 174 crore. As outlined in its red herring prospectus, the company plans to allocate a significant portion of its IPO proceeds, specifically Rs 150 crore, towards television campaigns over the next four years.
While Mamaearth's online presence has been a significant driver of its success, the brand's increasing focus on offline sales indicates a shift that may require heightened advertising efforts in traditional media. Mamaearth's revenue from offline channels has been on a consistent upward trajectory, accounting for 36.14% in FY23 and showcasing the brand's intent to compete with established giants like HUL, P&G, Dabur, and Reckitt.
This financial success is a testament to Mamaearth's resilience and strategic prowess in navigating the dynamic consumer goods market. As Mamaearth grows and becomes a formidable player in the competitive skincare landscape, the brand's commitment to innovation and consumer satisfaction remains unwavering.
Date & time of posting: 23 November 2023, 00:17 IST
Posted by: Matter5 News Team
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