Honasa Consumer Q2 profit dips sequentially to Rs 39 Cr; forays into oral care with investment in Fang

Honasa Consumer Ltd, the parent of personal care brands Mamaearth, The Derma Co, and BBlunt, saw its second-quarter profits narrow on a sequential basis to Rs 39 crore in the second quarter, with revenue from operations falling to Rs 538 crore.

The Varun and Ghazal Alagh-led company posted a 16% jump in operating revenue to Rs 538 crore as compared to Rs 461 crore it posted in the corresponding quarter in the previous year. On a sequential basis, its topline shrank by about 10% from Rs 595 crore, according to filings made with NSE.

The company’s profit after tax stood at Rs 39.2 crore, against a loss of Rs 18.5 crore a year earlier, primarily on account of its inventory correction projects. During the same period, Honasa's expenses increased only marginally to Rs 505 crore, edged up by employee benefit expenses.

Earlier this week, Honasa strengthened its private label roster with the launch of Luminéve, a night-focused Korean personal care range that marked its entry into the premium skincare space. The confidence comes on the heels of steady performance of its own bands across the quarter, which grew 20% in the September quarter,

The company also announced the acquisition of a minority stake in Couch Commerce, an oral care company, for a cash consideration of Rs 10 crore. The company primarily sells toothpastes and teeth whitening products under the brand name Fang, and has an ARR of about Rs 7 crore.

Its flagship brand MamaEarth turned back in green after gaining market share in core categories like cleansers, while Derma Co clocked Rs 750 crore ARR milestone with a high single-digit EBITDA profile.

Honasa competes with both legacy players like L'Oréal, Lakme and ITC, along with a host of new-age digital-first brands like Conscious Chemist, Foxtale, and Bare Anatomy, among others. The company plans to double down on its core categories like cleansers, shampoo, sunscreen, moisturiser, and baby care.