Sugar Cosmetics expects to turn a profit this financial year

Makeup business Sugar Cosmetics is confident it will turn a profit this financial year after growing 90% year-on-year over the past year. The business also plans to spend Rs 100 crore on expansion and marketing costs to continue to penetrate the Indian beauty market. 

“We expect to achieve profitability in the next two to three months as we operate at a 75% gross margin,” Sugar Cosmetics’ CEO and co-founder Vineeta Singh told YourStory. Sugar Cosmetics improved its bottomline by 15% in the 2023 financial year and plans to continue to do so. 
 
The business has reduced cash burn despite continuing to expand which has improved its profitability prospects. In the 2021 and 2022 financial years, Sugar Cosmetics spent between 20% and 30% of its total expenses on advertising and branding but has cut these costs significantly on the route to profitability.

The business believes that there exists ample scope for expanding its distribution network for both general trade and exclusive brand outlets, ET Retail reported. The business recently opened its 200th brick-and-mortar store in Bengaluru and has opened approximately 100 stores across the country over the course of the past year with an ambitious, omni-channel expansion strategy. 
 
In the coming two to three years, Sugar Cosmetics plans to launch a public listing. The exact date of the initial public offering will be dictated by market conditions, according to Singh.