Honasa Consumer Q1 results: Mamaearth parent net profit jumps 63% on-year to Rs 40 crore

Honasa Consumer registered a product business growth of 20.3 percent.

Honasa Consumer Ltd's Q1 FY25 net profit expanded to Rs 40.2 crore, a jump of 62.9 percent year-on-year from Rs 25.96 crore, showed the stock exchange filing. The jump in earnings was led by sales growth momentum and expanding margins.

Honasa, which operates brands including Mamaearth, reported its April-June quarter revenue at Rs 554.1 crore, up 19.3 percent from Rs 464.5 crore in the corresponding quarter previous year.

EBITDA margin (Earnings before interest, tax, depreciation and amortisation) expanded by 201 basis points on-year to 8.3 percent during fiscal first quarter, with EBITDA at Rs 46 crore, said Honasa Consumer in a statement. "This is driven by improvement in gross margins and scale led efficiencies," it added.

Honasa said that the firm registered a product business growth of 20.3 percent with an underlying volume growth of 25.2 percent, adding that it captured a strong market share in the face wash category in online while steadily gaining ground offline.

The category achieved approximately Rs 800 crore GMV ARR (gross merchandise value annual revenue rate) for Honasa. "We are determined to solidify our leadership in the ever-evolving BPC FMCG segment," said chairman and CEO Varun Alagh in a statement.

New products accounted for around 9 percent of Q1 FY25 revenue from operations for Honasa Consumer.

The Mamaearth brand business reached nearly 2 lakh FMCG retail outlets in India as of June 2024, increasing distribution by 30 percent year-on-year, the company said.

The firm is making a strategic transition towards direct distribution, implementing this model in 7 out of metro 8 cities. "This shift has led to a reduction in the reliance on super-distributors. Furthermore, over 90% of secondary sales are now captured through DMS," said the statement.

"As we transition to a more direct distribution model, we are well-positioned to sustain and accelerate our growth trajectory," said Varun Alagh.