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Honasa Consumer, Parent Company of Mamaearth, Reports 63% Growth in Q1 Profit

• ByStartupStory     |    August 10, 2024

Honasa Consumer, the parent company of Mamaearth, has reported a significant 63% increase in its consolidated net profit for the first quarter of FY25, ending June. The company’s profit surged to ₹40 crore, up from ₹25.96 crore in the same quarter last year, according to a recent stock exchange filing.

The robust growth was accompanied by a 19% year-on-year increase in revenue from operations, which reached ₹554 crore, compared to ₹464 crore in Q1FY24. This strong performance underscores the company’s growing presence in the beauty and personal care (BPC) segment, bolstered by its innovative product offerings and expanding market reach.

The company also reported a notable 57.9% rise in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), which stood at ₹46.1 crore, up from ₹29.2 crore a year earlier. The EBITDA margin improved to 8.3%, reflecting the company’s focus on cost efficiencies and margin expansion.

Honasa Consumer’s product business experienced a 20% growth, driven by a 25.2% increase in underlying volume growth. This impressive performance was attributed to improved gross profit margins and scale-led efficiencies, highlighting the company’s ability to optimize its operations effectively.

Despite these positive financial results, shares of Honasa Consumer closed 4.70% lower on Friday, trading at ₹473 per share on the NSE.

Reflecting on the company’s financial achievements and business performance for the quarter, Varun Alagh, Chairman and CEO of Honasa Consumer Limited, stated, “Mamaearth continues to win consumer love, driving offtakes and securing a position as the fourth largest face wash brand in modern trade according to Nielsen. Honasa has also captured a strong market share in the face wash category in 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% contribution from new products to our revenue, while our partnerships, like with Dr. Vanita Rattan to launch ‘Skin Renew by Dr. V’ range in The Derma Co, are enhancing our premium positioning in the actives category.”

Alagh further elaborated on the company’s strategic direction, stating, “As we transition to a more direct distribution model, we are well-positioned to sustain and accelerate our growth trajectory. 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.”

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