Mamaearth’s parent firm reports nearly ₹1,000 crore in revenues in FY22

NEW DELHI: Honasa Consumer Pvt. Ltd., which retails products under Mamaearth and The Derma Co brands, stayed profitable in financial year 2022, with revenues nearing the ₹1,000 crore mark.

Operating revenue of Mamaearth’s parent more than doubled to ₹943 crore in FY22 from ₹460 crore in the previous fiscal. The company earned ₹932 crore from sale of products, while it made ₹11.5 crore from sale of services.

Honasa Consumer reported a net profit of ₹19.8 crore for the financial year ended 31 March 2022, as per data accessed by business intelligence platform Tofler. In FY21, net profit was at of ₹24.6 crore, which was also its first profitable financial year.

However, it is important to note that Honasa Consumer made a few changes to its financials for FY21, which were visible in the latest FY22 filing. The company posted an expense of ₹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 added into the P&L (profit and loss) statement because of a shareholders agreement’s clause which says that if the company cannot provide a 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 company had also previously said it has a vision of becoming a ‘house of brands’.

Coming to expenses, the company’s expenditure on advertising and promotions grew 120% to ₹391 crore in FY22 from ₹178 crore a year ago. Spends on marketing made up more than 40% of the total expenses.

Honasa Consumer’s employee expense grew 182% to ₹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 ₹304.7 crore on purchases of stock-in-trade in FY22 against ₹161 crore in the previous fiscal.