Home / Companies / Company Results /  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.

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