Beauty and personal care retail business Sugar Cosmetics achieved profitability for the first time in December 2023. The business has already crossed the Rs 500 crore revenue mark for the 2024 financial year so far and is confident that it is on track to achieve the results targeted in the coming years to set the stage for its initial public offering.
“We have already crossed Rs 500 crore revenue in FY24 and we are expecting to close FY24 at a 500 plus crore net revenue,” said Sugar Cosmetics’ CEO and co-founder Vineeta Singh, ET Now reported. “We are looking at about a two to three years’ timeline in terms of an IPO because it is important to have some solid track record of profitability in the bank before taking the company public. This also aligned well with our board because we had an aspiration that we should go into the market at a Rs 1,000 crore plus revenue, plus profitability. And that is how we are expecting to look.”
Sugar Cosmetics expects the profitability it enjoyed in December to continue into the fourth quarter of the 2024 financial year. The business saw its revenue increase by 89% in the 2023 financial year and it also reduced its losses.
The business is confident that it can reduce its earnings before interest, tax, depreciation, and amortisation loss margin to almost zero in the 2024 financial year, according to Singh. Despite recent inflationary pressures, the business has seen strong demand in January so far and expects for this positive sentiment to continue in its stores and on its e-commerce platform.
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