 "Ghazal Alagh, Chief Innovation Officer, Honasa Consumer Limited")
Honasa Consumer, the parent firm of direct-to-consumer (D2C) brand Mamaearth, on Monday announced that its active ingredient-backed skincare brand The Derma Co has reached an annual revenue rate (ARR) of Rs 500 crore.
The company’s stock price was up by 4.8 per cent at the close of the market hours, on the back of the update from the company.
The company attributed the milestone to creating differentiated products across categories like face serums, hydrating sunscreens, sunscreen sticks, acne patches, and customising them for Indian skin and weather.
“The focus on leveraging data for product innovation and responding swiftly to emerging trends continues to be a cornerstone of the strategy,” Honasa said in a statement.
ALSO READ: How Varun and Ghazal Alagh's Mamaearth became profitable D2C empire
ALSO READ: How Varun and Ghazal Alagh's Mamaearth became profitable D2C empire
The Derma Co, which competes with the likes of Peak XV Partners-backed Minimalist and A91 Partners-backed Plum, claims to have sold over 10 million units in the last fiscal.
“Our success is an output of in-depth consumer study of the evolving consumer demands and being able to innovate swiftly to deliver differentiated propositions to our consumers. This focus on excellence has helped us set new benchmarks across the active ingredient-based skincare segment,” said Varun Alagh, co-founder, chairman, and chief executive of Honasa Consumer.
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The Derma Co maintains that it provides a diverse range of products addressing various skin conditions, including acne, pigmentation, skin dullness, and sun care, among others. Aside from The Derma Co, Honasa operates six other brands including Mamaearth, Bblunt, Ayuga, Aqualogica, Dr Sheth’s, and Staze.
In the third quarter (Q3) of the financial year 2023-24 (FY24), Honasa Consumer reported a 264 per cent year-on-year (Y-o-Y) increase in its net profit to Rs 25.9 crore, compared to Rs 7.1 crore in the year-ago period. The company had posted a profit of Rs 29.4 crore a quarter prior.
The company’s consolidated revenue from operations grew 28 per cent Y-o-Y to Rs 488.2 crore, up from Rs 382.2 crore a year ago and Rs 496.1 crore in Q2 FY24.
Honasa’s younger brands, including The Derma Co, recorded impressive growth during the quarter. The Derma Co achieved Ebitda profitability in Q3.
