Aniket Pujari
In the corresponding quarter of the previous fiscal, Honasa Consumer posted a net loss of ₹29.4 crore, the company said in a regulatory filing. The company’s revenue from operations dropped 6.9% to ₹461.8 crore as against ₹496 crore in the corresponding period of the preceding fiscal.
At the operating level, EBITDA loss stood at ₹30.7 crore in the second quarter of this fiscal over ₹40.1 crore in the corresponding period in the previous fiscal.
Honasa Consumer’s younger brands, including The Derma Co., Aqualogica, BBlunt, and Dr. Sheth’s, achieved over 30% year-to-date growth in both quarters of the year.
Focus categories—specifically face washes, sunscreens, and face serums—are experiencing year-over-year growth of over 28% in the first half, adjusted for inventory corrections, and continue to capture increasing market share. These categories now contribute nearly 50% of the company’s total business.
In retail, off-take remains ahead of competitors, with Mamaearth products gaining traction. As of September 2024, Mamaearth face washes and shampoos increased their offline value market share by 125 basis points year-on-year, according to data from NielsenIQ.
“Over the past few months, we have been implementing Project Neev to optimise our distribution model. In this quarter, we have taken strategic steps towards transitioning from super-stockists to direct distributors in the top 50 cities. This transition has impacted our revenue and profits, leading to a slowdown for Mamaearth.
However, this realignment will also strengthen the offline go-to-market (GTM) strategy in the quarters ahead, setting the stage for our next phase of growth. For us, strengthening our offline GTM capabilities and bringing Mamaearth back on the strong growth trajectory are our top priorities,” Varun Alagh, Chairman and CEO of Honasa Consumer.
The results came after the close of the market hours. Shares of Honasa Consumer Ltd ended at ₹369.75, up by ₹5.40, or 1.48% on the BSE.
