Thursday, December 5, 2024
No menu items!
HomeIndustryConsumer ServicesThe Sleep Company Witnesses 2.5X Revenue Growth to Rs 312 Cr in...

The Sleep Company Witnesses 2.5X Revenue Growth to Rs 312 Cr in FY24

- Advertisement -

The direct-to-consumer (D2C) mattress and sleep solutions industry has seen significant expansion over the past half-decade, with The Sleep Company, backed by Premji Invest, emerging as a key player. In FY24, the company’s operational revenue surged 2.5X compared to the previous year, reflecting its continued momentum from FY23.

The Sleep Company’s revenue from operations reached Rs 312.33 crore in FY24, up from Rs 127.14 crore in FY23, according to its consolidated financial statements filed with the Registrar of Companies (RoC). The company, known for offering products such as mattresses, pillows, cushions, bedding, and office chairs, distributes its products through its website and major e-commerce platforms, including Amazon and Flipkart.

The growth was primarily fueled by its flagship mattress segment, which accounted for 65% of its revenue and saw an 89% increase, generating Rs 203.69 crore in FY24. While mattresses are the sole finished goods produced by the company, its traded goods segment, including chairs, pillows, and beds, skyrocketed 5.6X to Rs 108.6 crore during the same period. Interest income added another Rs 7.7 crore to its total revenue, bringing it to Rs 320 crore for FY24.

On the cost front, material expenses rose 2.4X to Rs 144.74 crore. Advertising costs also escalated significantly, increasing by 89.7% to Rs 101.43 crore, while employee benefits experienced a threefold jump to Rs 35.94 crore. Additionally, rent, finance, and other expenses collectively drove total costs to Rs 378.68 crore in FY24, compared to Rs 166.7 crore in FY23.

Despite the impressive revenue growth, the company reported a 58% rise in losses, which amounted to Rs 58.69 crore in FY24, compared to Rs 37.06 crore in FY23. Its ROCE and EBITDA margins stood at -26% and -15.92%, respectively. The Sleep Company spent Rs 1.21 to generate a rupee of operating revenue during this fiscal year. The company closed FY24 with cash and bank balances of Rs 4.15 crore and current assets worth Rs 289 crore.

As the market matures, traditional mattress companies have begun adopting innovative strategies, including acquisitions, enhanced online presence, and offline expansions, to maintain their market share. This shift in consumer behavior and pricing scrutiny is likely to pressure margins across the industry. For The Sleep Company and its peers, the road ahead may not be sleepless but will certainly demand strategic agility as investors closely monitor their performance.

RELATED ARTICLES

Most Popular

Recent Comments