 "Mamaearth parent net profit rises 62.7% to Rs 40.2 crore in Q1 FY25")
Honasa Consumer Ltd, the parent firm of D2C brands such as Mamaearth, The Derma Co, and BBlunt, reported a net profit of Rs 40.2 crore for the first quarter (Q1) of financial year 2024-25 (FY25), a jump of 62.7 per cent compared to Rs 24.7 crore in the year-ago period. The company had posted a profit of Rs 30.5 crore in the previous quarter.
The company’s consolidated revenue from operations grew 19 per cent year-on-year (YoY) to Rs 554.1 crore in Q1, up from Rs 464.5 crore a year ago and Rs 471.1 crore in Q4 FY24.
The Gurugram-based firm's total expenses in Q1 amounted to Rs 520.4 crore, up from Rs 443.1 crore a year ago and Rs 450.9 crore in the previous quarter.
“Honasa has demonstrated remarkable resilience and growth this quarter, underscored by a strong operating performance and improved profitability,” said Varun Alagh, Chairman and CEO, Honasa Consumer.
“By leveraging our unique House of Brands strategy, purpose-driven approach, and strong emphasis on R&D and innovation, we are determined to solidify our leadership in the ever-evolving BPC FMCG segment,” he added.
In its earnings presentation, the company said that it would be discontinuing its ayurvedic beauty brand Ayuga to “focus on building other opportunities.” Honasa stated that it could not establish a product-market fit and began sunsetting the brand from June this year.
Ayuga was launched in December 2021 to introduce ayurvedic beauty products in modern formats for Indian millennials. The brand was revamped two years later based on consumer feedback before being discontinued.
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In Q1 FY25, Honasa registered product business growth of 20.3 per cent, with underlying volume growth (UVG) of 25.2 per cent.
“Honasa has also captured a strong market share in the face wash category online while steadily gaining ground offline, driven by its House of Brands strategy and innovation capabilities. Our focus on a data-driven, consumer-centric strategy has led to a remarkable 9 per cent contribution from new products to our revenue,” Alagh added.
These new products include the likes of Mamaearth Beetroot Face Wash, Mamaearth Rice Water Dewy Sunscreen, The Derma Co Snail Peptide 96 Hydrating Serum, Aqualogica Glow+ Infused Tinted Sunscreen, Dr Sheth’s Kesar & Kojic Acid Serum, and BBlunt Refresh Dry Shampoo.
The company has also made improvements in its offline reach. Mamaearth reached nearly 200,000 FMCG retail outlets in India as of June 2024, increasing distribution by 30 per cent YoY, the company said. The brand expanded to 1,000 consumer touchpoints (stores) in partnership with Reliance Retail.
Honasa is also strategically transitioning towards direct distribution, implementing this model in seven out of eight metro cities. This, the company said, has led to a reduction in reliance on super-distributors.
“Furthermore, over 90 per cent of secondary sales are now captured through DMS, streamlining operations and improving efficiency,” it said.