Honasa Consumer nearly doubles quarterly profit to Rs 50 Cr as young brands, offline expansion come in focus
Mamaearth parent Honasa Consumer’s Q3 profit soared 92% to Rs 50 crore following strong revenue. The performance was led by a recovery in Mamaearth and its other younger brands such as The Derma Co and Aqualogica, as the firm expanded its offline reach to over 2.7 lakh outlets.
Honasa Consumer, the parent of personal care brands Mamaearth and The Derma Co, nearly doubled its after-tax profit to Rs 50 crore in the December quarter, the company shared in an exchange filing on Thursday.
The NCR-based company posted 16% growth in its operating revenue to Rs 601.5 crore, as compared to Rs Rs 517.5 crore in the corresponding quarter in the previous year. On a sequential basis, its topline improved from Rs 538 crore.
During the same period, the Varun Alagh-led company saw its after-tax profit widen by 92% to Rs 50 crore from Rs 26 crore in the previous year. On a sequential basis, its earnings improved from Rs 39 crore in the September quarter.
"Our flagship and largest brand, Mamaearth, is back to double-digit growth, driven by product superiority
and sharper investments. Aspirational Gen Z-led communication, market-beating formulations, and
focused investment choices translated into stronger traction and market share gains across key categories.
The Derma Co., a leading science-backed skincare brand in India, continued to scale with a healthy doubledigit EBITDA profile and increasing consumer pull, while our younger brands grew over 25%, backed by rising adoption in focus segments," said Varun Alagh, Chairman, CEO & Co-founder, Honasa Consumer said in a press note.
Shares of the company closed 2.3% higher at Rs 298 apiece on NSE.
Honasa Consumer, which is also the parent company of popular brands like The Derma Co, Aqualogica, Dr Sheth’s, and BBlunt, saw its younger brands record over 25% growth. The Derma Co, also clocked double-digit EBITDA profile during the quarter, while its overall focus categories including moisturizers, sunscreens etc grew 25%.
During the quarter, it also improved its offline execution, with a renewed focus on the top 100 towns. Its direct outlet coverage crossed 1 lakh outlets, while total distribution expanded over 25% YoY to 2.7 lakh outlets.
(The story was updated with the correct after-tax profit figure.)