Beauty and personal care brand SUGAR Cosmetics has reported a 20% increase in its operating revenue for FY24, reaching Rs 505.10 crore, up from Rs 420.28 crore in the previous fiscal. The omnichannel beauty brand also reduced its losses by 11.3%, bringing them down to Rs 67.58 crore from Rs 76.24 crore in FY23, according to its recent regulatory filings with the Registrar of Companies (RoC).
Despite this positive growth in revenue and reduced losses, SUGAR’s bottom line was impacted by rising expenses, which climbed by 15% to Rs 583.72 crore. This increase was primarily driven by higher employee benefit expenses, finance costs, and other operational expenses. The brand continues to maintain a presence across multiple channels, including e-commerce marketplaces, quick commerce platforms, and general trade channels.
SUGAR last raised $50 million in May 2022, a round led by L Catterton, with participation from existing investors A91 Partners, Elevation Capital, and India Quotient.
While SUGAR Cosmetics has made strides in reducing losses, its peer RENÉE Cosmetics nearly doubled its revenue during the same period. RENÉE reported an operating revenue of Rs 191.65 crore, up from Rs 97.15 crore in FY23, according to a report by Entrackr citing RoC filings. However, RENÉE’s rapid growth was accompanied by a significant increase in losses, which rose from Rs 32.66 crore to Rs 61.45 crore.
In June this year, RENÉE Cosmetics raised Rs 100 crore (approximately $12 million) in a Series B funding round led by existing investors Evolvence India and Edelweiss Group, valuing the company between Rs 1,200 crore and Rs 1,400 crore.
According to regulatory filings, SUGAR Cosmetics noted, “Its bottomline was hurt by higher expenses during the year, which increased 15% to Rs 583.72 crore, mainly due to higher employee benefit expenses, finance costs, and other expenses.”
For RENÉE Cosmetics, Entrackr reported, “However, the improvement in topline was accompanied by higher losses, which increased from Rs 32.66 crore to Rs 61.45 crore.”