Strong Revenue Growth and Return to Profits
Marico-owned Beardo, a leading brand in the male grooming segment, reported a remarkable resurgence in FY24. The company achieved a 62.4% year-on-year growth, with its revenue from operations increasing to Rs 173.2 crore from Rs 106.6 crore in FY23. This growth marks a significant turnaround after a challenging FY23, bringing the company back to profitability with a net profit of Rs 3.63 crore, compared to a loss of Rs 6.1 crore in the previous fiscal year.
Key Revenue Drivers and Operational Efficiency
Beardo’s primary income came from its beard-focused products, including oils, combs, waxes, face washes, and lotions, sold through its website, online marketplaces, and retail outlets.
- Procurement costs rose by 83.2% to Rs 67.5 crore in FY24, accounting for 40% of the total expenses.
- Advertising and employee benefits costs were kept steady at Rs 43.89 crore and Rs 12.5 crore, respectively, contributing to controlled overall spending.
- Total expenditure increased by 46.1% to Rs 168.4 crore, up from Rs 115.3 crore in FY23.
Beardo’s focus on maintaining a lean operational structure while leveraging Marico’s distribution and marketing networks contributed to its efficient cost management. The company spent Rs 0.97 for every rupee earned in FY24, showcasing improved unit economics.
Competitive Landscape
Beardo operates in a competitive male grooming market alongside players such as Ustraa, The Man Company, and Bombay Shaving Company:
- Ustraa saw a decline in revenue, reporting Rs 94.02 crore and a loss of Rs 50 crore in FY24.
- Bombay Shaving Company achieved Rs 182 crore in revenue for FY23 and is targeting Rs 260-280 crore for FY24.
- The Man Company recorded Rs 115 crore in revenue for FY23, with FY24 results pending.
Despite fierce competition, Beardo’s performance stands out due to its focus on core offerings and strategic use of Marico’s infrastructure.
Strategic Growth and Future Potential
Beardo has adopted a strategy typical of startups acquired by larger firms—consolidating operations, leveraging the parent company’s resources, and expanding into new product categories like high-margin perfumes. This approach has set the stage for future growth, with the potential to double revenues by FY27 if it capitalizes on trends and viral marketing campaigns.
Additionally, Beardo’s cautious foray into women’s grooming products highlights its intent to diversify while staying aligned with its brand ethos.
Financial Highlights:
- Revenue: Rs 173.2 crore (+62.4% YoY)
- Net Profit: Rs 3.63 crore (vs. a Rs 6.1 crore loss in FY23)
- ROCE: 75.58%
- EBITDA Margin: 4.21%
Beardo’s return to profitability and impressive growth trajectory underscore its potential to lead the male grooming market. Backed by Marico’s robust support, the company is well-positioned to navigate the evolving personal care landscape and tap into broader opportunities for expansion.
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