Honasa Consumer Limited · NSE:HONASA
Honasa Consumer — H1 FY24 Earnings Presentation
26 slides from Honasa Consumer's earnings presentation, Nov 22, 2023
Slide 1: Cover letter to stock exchanges: Investor Presentation
November 22, 2023 To, To, Listing Department Listing Department NATIONAL STOCK EXCHANGE OF INDIA LIMITED BSE LIMITED Exchange Plaza, C/1, Block G, P. J. Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Mumbai -400 051 Mumbai - 400 001 Scrip Symbol: HONASA Scrip Code: 544014 Sub: Investor Pres
Slide 2: Q2 & H1 FY24 Results Investor Communication
Q2 & H1 FY24 Results Investor Communication Q2 & H1 FY24
Slide 3: Disclaimer
Disclaimer By accessing, viewing or attending this presentation, you accept and agree to be bound as follows: This Presentation is prepared by Honasa Consumer Limited (“Company”) and contains certain forward-looking statements including those describing Company’s strategies, strategic direction, obj
Slide 4: Table of Contents
Table of Contents 1 Financial Snapshot – Q2 & H1 FY24 2 Business Overview 3 Focus on ESG 4 P&L Summary 3
Slide 5: Continued growth momentum in the quarter with improved profitability profile
Continued growth momentum in the quarter with improved profitability profile… 1 2 3 4 INR 496 Cr 69.5% 8.1% 169 bps Revenue from Operations Gross Profit % EBITDA % 21% YoY Growth Industry leading EBITDA: INR 40 Cr LFL Growth1 24% Gross Profit2 % 53% YoY Growth INR 29 Cr 27% INR 41 Cr Profit After Ta
Slide 6: While delivering strong performance in H1FY24
…while delivering strong performance in H1FY24 … 1 2 3 4 INR 961 Cr 70.2% 7.2% 531 bps Revenue from Operations Gross Profit % EBITDA % 33% YoY Growth Industry leading EBITDA: INR 70 Cr LFL Growth1 36% Gross Profit2 % 400% YoY Growth INR 54 Cr 35% INR 89 Cr Profit After Tax YoY Volume growth3 Free Ca
Slide 7: Delivering market beating growth
…and delivering market beating growth 1 2 3 4 Revenue from Operations (INR Cr) Q2’ 24 H1’ 24 40% Online Growth 496 961 410 723 33% Offline Growth Q2' 23 Q2' 24 H1' 23 H1' 24 Revenue Growth % compared to FMCG Companies2 Q2’ 24 H1’ 24 21% 33% 7% 9% 2 FMCG Companies2 (Median growth) Honasa FMCG Compani
Slide 8: With strong operating performance
…with strong operating performance 1 2 3 4 EBITDA (INR Cr) Q2’ 24 H1’ 24 EBITDA% 6.4% 8.1% 1.9% 7.2% 40 70 26 14 Q2' 23 Q2' 24 H1' 23 H1' 24 Profit After Tax (INR Cr) Q2’ 24 H1’ 24 PAT% 3.7% 5.9% 0.5% 5.6% 29 54 15 4 Q2' 23 Q2' 24 H1' 23 H2' 24 Based on consolidated financials 7
Slide 9: Advertisement & Employee Benefit expense optimised on account of economies of scale
EBITDA expansion driven by greater leverage and effectiveness in Advertisement 1 2 3 4 Expense and Others +531 bps 39 bps 265 bps 227 bps 50 bps 7.2% 1.9% EBITDA Employee Benefit Advertisement Others EBITDA (H1’23) Expense Expense (H1’24) Advertisement & Employee Benefit expense optimised on account
Slide 10: Business Overview
1 2 3 4 Business Overview 9
Slide 11: India's largest digital-first BPC company with a diverse portfolio of six brands
We are India’s largest digital-first BPC company with a diverse portfolio 1 2 3 4 of six brands Professional hair care and styling Clean and toxin-free Bio-actives based skincare Ayurvedic beauty products in Science backed expert products Hydrating skincare designed for products enabling salon like
Slide 12: Uniquely positioned to capture significant growth trends shaping the BPC market
Uniquely positioned to capture the significant growth trends shaping the 1 2 3 4 BPC market… India BPC products market is expected to grow at ~11% CAGR between 2022-27P Significant trends shaping consumer demand in BPC in India ($bn) Indian BPC market size and growth ($ bn) Mass Masstige Premium 11
Slide 13: Growing profitably and in a capital efficient manner
… demonstrated by our ability to grow profitably and in a capital 1 2 3 4 efficient manner Revenue from operations (INR Cr) Gross Profit (INR Cr) Revenue Profit Pool 71.2% 70.0% 70.1% 70.2% 1,493 1,046 943 961 660 675 327 460 FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24 Adjusted EBITDA4 (INR Cr) Work
Slide 14: Building Honasa as a Digital First House of Brands with Omnichannel Distribution
Building Honasa as a Digital First House of Brands with Omnichannel 1 2 3 4 Distribution 01 Consumer focused brand building playbooks On trend data-based innovation 02 03 Strong omnichannel distribution Purpose based brands with 04 strong ESG framework 13
Slide 15: Mamaearth is the 13th largest BPC brand in India
Mamaearth enters the coveted Top 15 brands in BPC club, overtaking 1 2 3 4 certain legacy brands … Consumer Focused Brand building Playbooks BPC brand size in terms of retail spends1 (CY22, INR Cr) 13 Mamaearth is the 13th largest BPC brand in India 1,982 Cr 1. Source : Jefferies (Report Link) 2: Da
Slide 16: Mamaearth: increasing brand strength
… led by increasing brand strength 1 2 3 4 Consumer Focused Brand building Playbooks Mamaearth - India’s most-searched BPC brand1,2 [Our brand searches improved by 16% for H1FY24 YoY3] Onion Shampoo Campaign Shaadi Wala Glow Ubtan Campaign Beautiful Indians 2023 21 Cr+ views 24 Cr+ views 11 Cr+ view
Slide 17: The Derma Co.: consistent scale with ARR of INR 380Cr+
The Derma Co. : Continued to deliver consistent scale with an ARR of 1 2 3 4 Consumer Focused INR 380Cr+ Brand building Playbooks Key Activations 1% Hyaluronic Sunscreen Aqua Gel 2% Salicylic Acid Face Serum ~1.5 Cr views garnered on Sali-Cinamide Campaign – Power of Two Serums Brand Strength Google
Slide 18: Aqualogica: continued to scale well with a focus on category play
1 2 3 4 Aqualogica: Continued to scale well with a focus on category play Consumer Focused Brand building Playbooks Glow+ Oil Free Moisturizer Illuminate+ Oil Free Moisturizer Fastest to scale to 180 Cr ARR Aqualogica 19 months1 TDC 36 months1 ME 38 months1 Key Activations 2 Cr views garnered on Glo
Slide 19: Dr. Sheth's: scaled 30x+ since acquisition, ARR of INR 150 Cr
Dr. Sheth’s : Scaled 30x+ since acquisition achieving ARR of INR 150 Cr 1 2 3 Consumer Focused 4 Brand building Playbooks 4th brand from the House of Honasa to join the INR 150 Cr ARR club Key Activations Neem & Salicylic Acid Foaming Face Wash Ceramide & Vitamin C Sunscreen Tea Tree & Lactic Acid B
Slide 20: BBlunt: strong growth trajectory, scaled product business 3x+
BBlunt : On a strong growth trajectory – Scaled up product business by 3x+ 1 2 3 4 since acquisition Consumer Focused Brand building Playbooks Hair Fall Control Shampoo & Conditioner Intense Moisture Heat Hair Spa Mask Key Activations Hairfall Control campaign 1 Cr+ views Salon Secret – High Shine C
Slide 21: New products contributed ~13% to H1FY24 revenue from operations
1 2 3 4 New Products have contributed ~13% to H1FY24 Revenue from Operations On trend Data based Innovation Multani Mitti Face Rosemary Anti- Hyaluronic Sunscreen Stick Glow+ Dewy Sunscreen Intense Shine Hair Mask Haldi & Hyaluronic Wash Hair Fall Shampoo Acid Sunscreen Milky Soft Head to Soft Matte
Slide 22: Continued focus on strengthening omnichannel distribution
1 2 3 4 Continued focus on strengthening distribution Strengthening omnichannel distribution Offline Online Growing Modern Trade Channel with Quick Commerce emerging as a strong presence in 30+ MT accounts channel with 100%+ YoY growth Reached to 1,65,937 FMCG retail outlets in India increasing dist
Slide 23: Focus on ESG
1 2 3 4 Focus on ESG Purpose based brands with strong ESG framework Robust Corporate Purpose Driven Brands Governance Framework 50% independent Gender diversity board (58% Female workforce1) Trees planted since inception under the Plant Goodness Initiative – 510,877 Plastic Positive Organisation: He
Slide 24: P&L Summary
1 2 3 4 P&L Summary 23
Slide 25: Financial Summary – Consolidated P&L
1 2 3 4 Financial Summary – Consolidated P&L (All amounts in INR crore, unless otherwise stated) Quarter Ended Half Year Ended Year Ended Particulars Q2 FY24 Q2 FY23 YoY Growth H1 FY24 H1 FY23 YoY Growth FY23 Revenue from operations 496 410 21% 961 723 33% 1,493 Cost of Goods Sold 151 127 286 213 44
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