Honasa Consumer Ltd, renowned for its brands Mamaearth and Derma Co, has reported a notable net profit of ₹29.43 crore in the second quarter ending September. This figure nearly doubles the ₹15.19 crore recorded in the corresponding quarter of the previous fiscal year. The company’s revenue from operations saw a substantial 20.85 percent increase, reaching ₹496.10 crore in the quarter under review. This financial disclosure marks the company’s inaugural quarterly results following its listing on the stock exchanges.
Varun Alagh, Chairman and CEO of Honasa Consumer Ltd, expressed satisfaction with the company’s performance, stating, “Honasa has been able to deliver market-beating growths and constantly improve the profitability portfolio of the company.” Alagh highlighted the impressive year-on-year growth of 33 percent in the first half of FY24, which is 3.8 times the median growth of FMCG companies in India.
Responding to inquiries about the drivers of profitability, Alagh explained, “We have been able to efficiently leverage the marketing spends. As the awareness for our brands is growing, the need for marketing in terms of percentage is declining.” He further noted that operational expenses are not increasing as rapidly as revenue, and the company is experiencing procurement leverage with scale. Dr Sheth’s has now joined the ₹150 crore club, becoming the fourth brand from Honasa’s portfolio to achieve this milestone after Aqualogica and Derma Co.
Alagh emphasized the company’s commitment to continued investment in brand-building, distribution, and research and development for innovation. Despite being a leader in the digital Beauty and Personal Care (BPC) sector, Honasa Consumer has also established a robust offline distribution network. According to NielsenIQ, the company’s brands are now available in 1,65,937 retail outlets as of September 2023, marking a significant 47 percent increase in offline distribution year-on-year.
