At the time of its acquisition, the co-founder and Chief Executive of Beardo (1), Ashutosh Valani, claimed that it was profitable in 2020. The audited financial statements of the company now also validate his claims. Notably, the firm has recorded a 2.2 Crore INR profit in the financial year 2020
Moreover, Beardo has also generated its operating revenue via sales of men’s grooming products, with a 63% increase. In the previous financial year, it was 48.2 Crore INR, and it has now risen to 78.5 crore INR during FY 2020. The company has managed to enhance its production efficiencies while cutting the cost with a higher production scale.
Consequently, Beardo managed to improve its EBITDA margins by 4X to 31.1% in 2020 from around 7% in the previous year. To meet the surge in demand, the company also spent more on raw materials. The total cost of raw material was increased to 25.3 crore INR in FY 2020, observing a total rise of 92%.
Beardo to Continue its Journey as Any Growth Stage Profitable Company
The Ahmedabad-based company spent over 13 crore INR on employee benefits during the current fiscal year. It observed a surge of 84.4% compared to 7.05 Crore INR spent on the same category during the fiscal year 2019.
As per the expense sheet of Beardo, it has to spend the highest on sales and marketing. It accounts for 45.1% of the total expenditure of the company in 2020. In the previous year, these expenses have increased by 42.3% from 21 crore INR to 34.14 crore INR in 2020.
The total expenditure of Beardo during the fiscal year 2020 amounted to 75.62 INR increasing to 57% compared to 48.15 crores spend in 2019. The success of the operational efficiencies of Beardo during the current fiscal is evident in the company’s good figures. After taxes, its profit rose to 10.2X to 2.2 Crore INR in 2020, making it the second consecutive profitable year for the brand.