Parent Mamaearth’s net profit jumps 62.7% to Rs 40.2 crore in Q1FY25

3 minutes of reading Last update: August 09, 2024 | 19:37 IST

Honasa Consumer Ltd, parent company of D2C brands like Mamaearth, The Derma Co and BBlunt, reported a net profit of Rs 40.2 crore for the first quarter (Q1) of fiscal 2024-25 (FY25), up 62.7 per cent from Rs 24.7 crore in the same period last year. The company had posted a profit of Rs 30.5 crore in the previous quarter.

The company’s consolidated operating revenue rose 19 per cent year-on-year (YoY) to Rs 554.1 crore in Q1, compared with Rs 464.5 crore a year earlier and Rs 471.1 crore in Q4 FY24.

The Gurugram-headquartered company’s total expenses in the first quarter stood at Rs 520.4 crore, up from Rs 443.1 crore a year earlier and Rs 450.9 crore in the previous quarter.

“Honasa demonstrated remarkable resilience and growth this quarter, evidenced by solid operational results and improved profitability,” said Varun Alagh, President and CEO, Honasa Consumer.

“Leveraging our unique House of Brands strategy, purpose-driven approach and strong focus on research, development and innovation, we are committed to cementing our leadership position in the ever-expanding BPC FMCG segment,” he added.

In its earnings presentation, the company said it would discontinue its Ayurvedic beauty brand Ayuga to “focus on building other opportunities.” Honasa said it failed to establish product-market fit and began phasing out the brand in June of this year.

Ayuga was launched in December 2021 with the aim of introducing Ayurvedic beauty products in modern formats for Indian millennials. The brand was relaunched two years later based on consumer feedback before being discontinued.

In the first quarter of fiscal year 2025, Honasa recorded a 20.3% increase in product sales with an increase in underlying volume (UVG) of 25.2%.

“Honasa has also gained strong market share in the face wash category online, while steadily gaining traction offline, driven by our House of Brands strategy and innovation capabilities. Our focus on a data-driven, consumer-centric strategy has led to an extraordinary 9 percent contribution from new products to our revenue,” Alagh added.

New products include Mamaearth Beetroot Face Wash, Mamaearth Rice Water Dewy Sunscreen, Derma Co’s 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 has reached nearly 200,000 FMCG retail outlets in India since June 2024, increasing distribution by 30 per cent year-on-year, the company said. The brand has expanded to 1,000 consumer touchpoints (stores) in partnership with Reliance Retail.

Honasa is also strategically moving to direct distribution, rolling out the model in seven of its eight metropolitan cities. This, the company says, has led to a reduction in its reliance on super-distributors.

“Furthermore, more than 90 percent of secondary sales are now recorded through the DMS, streamlining operations and increasing efficiency,” the release said.

First published: August 09, 2024 | 19:37 IST