Sheela Foam Limited, India's leading PU Foam manufacturer and the parent company of flagship brands Sleepwell and Kurl-on, today announced its financial results for the second quarter and half-year ending September 30, 2024. The company reported solid growth across its segments, bolstered by post-acquisition synergies that have strengthened both its B2B and B2C divisions.
The successful integration of Sleepwell and Kurl-on under Sheela Foam Limited has provided synergy benefits exceeding Rs. 100 crores annually, enhancing overall profitability. Operational streamlining, market expansion, and optimized resource management have contributed to a stronger foundation, allowing Sheela Foam to deliver sustained value for customers and stakeholders in the sleep solutions industry.
Q2 FY25 Financial Highlights (Including Kurl-on):
Mattress Segment: Volume growth of 19% YoY, reflecting a strong demand in the sleep industry
Sleepwell: 40% YoY growth
Kurl-on: 26% YoY growth
Foam Segment: 11% YoY growth, with increased penetration in industries including automotive, footwear, lingerie, and ancillary markets
Standalone Financial Performance:
For Q2 FY25, Sheela Foam’s standalone revenue reached INR 602 crores, marking a 42% increase year-over-year. EBITDA grew by 54% YoY to INR 70 crores, with an EBITDA margin of 11.7%. Net profit stood at INR 43 crores, representing a 12% increase from the prior year.
Consolidated Financial Performance:
On a consolidated basis, Sheela Foam reported revenues of INR 813 crores for Q2 FY25, a 32% YoY increase. EBITDA was INR 69 crores, reflecting a 5% YoY rise, with margins at 8.5%. Net profit was recorded at INR 9 crores.
Strategic Growth and Product Innovation:
Q2 FY25 also marked the launch of advanced products, such as the Spinetech, Orthomagic, and Pro FitRest mattresses, recommended by the Indian Association of Orthopaedic Surgeons and the Indian Association of Physiotherapists. These offerings, alongside an extensive distribution network of over 20,000+ touchpoints, have strengthened Sheela Foam’s market footprint and contributed to the 19% YoY growth in the mattress segment.
Other business areas, including furniture cushioning, Comfort Foam, and Technical Foam, also recorded substantial volume gains, driven by demand in sectors such as automotive, footwear, lingerie, and other ancillary markets.
Management Commentary:
Mr. Rahul Gautam, Executive Chairman, Sheela Foam Limited, stated, “Both Sleepwell and Kurl-on brands have entered their desired orbits, showing impressive volume growth in Q2FY25 while maintaining strong margins. We remain committed to delivering customer-centric innovation across all areas of our business.”
Mr. Tushaar Gautam, MD, Sheela Foam Limited, added, “We have unlocked additional value by optimizing costs post-integration, resulting in an adjusted EBITDA nearing 10% for Q2FY25 of India business, primarily driven by synergies across raw material, logistics, and manpower rationalization.”
About Sheela Foam Limited:
Sheela Foam is leading the science of comfort in three continents. With over 25+ benchmark manufacturing plants in Europe and the Asia Pacific, Sheela Foam is among the most R&D-driven foam manufacturers in the world. For more than 50 years, it is driving the foam industry with competence and commitment to quality thus becoming an establishment for benchmark innovation. Sheela Foam has two international subsidiaries—Joyce Foam in Australia and Interplasp in Spain. Sheela Foam’s focus on R&D and quality assurance has led to international certifications and recognition for foam quality. Sleepwell and Kurl-on are the leading brands of Sheela Foam in India. Their product excellence and innovations stand on the shoulders of Sheela Foam’s innovative DNA.
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