Online gifting platform Ferns N Petals recorded a loss of Rs 24.26 crore in the fiscal year 2024 (FY24), compared to a profit of Rs 109.5 crore in FY23. This decline in profitability comes despite a significant rise in revenue.
The company’s income from operations increased to Rs 705.4 crore in FY24, a 16% growth from Rs 607.3 crore in FY23. The majority of this revenue, about 91%, came from the cakes, flowers, and gifting solutions segment, which grew by 15% annually, reaching Rs 640.75 crore in FY24 from Rs 556.18 crore in FY23.
Additional income was generated through delivery charges and other revenue streams. Ferns N Petals sells its products via its website, third-party e-commerce platforms, company-owned outlets, and franchises.
Operational Costs Rise
The company’s expenses increased by 2% to Rs 736.7 crore in FY24, up from Rs 723 crore in FY23. Material costs accounted for 42.3% of the total expenditure, rising by 12.4% to Rs 312 crore from Rs 277.6 crore in FY23.
Employee benefit expenses also saw a slight increase of 2.8%, reaching Rs 124.49 crore. Advertising expenses were reported at Rs 156.65 crore, while transportation and other operational costs amounted to Rs 143 crore.
According to the financial report, the company spent Rs 1.04 to earn Rs 1 in FY24, indicating high operational challenges.
Investment and Expansion
Ferns N Petals has raised Rs 206.5 crore in funding to date, with Lighthouse being a key investor. The company has diversified into the hospitality and wedding sectors through Udaman Hotels and FNP Weddings and Events.
While Ferns N Petals achieved revenue growth in FY24, rising operational costs and expenditure led to a financial loss. The company’s focus on expansion and maintaining a competitive presence in the online gifting and events market may require further strategic adjustments in the coming years.
