Honasa Consumer Ltd, the parent company of Mamaearth, reported a net profit of Rs 24.9 crore for the fourth quarter (Q4) of FY25, down 18 percent from Rs 30.5 crore in the year-ago period. The company had reported a profit of Rs 26 crore in the previous quarter, as per regulatory filings.
Profit for the full financial year, however, fell by a sharp 32 percent to Rs 72.6 crore in FY25, compared to Rs 110.5 crore in the previous year.
Honasa's gross profit margin improved to 70.7 percent in Q4 FY25, up 76 bps YoY, driven by an improved product mix and operational efficiencies, the company said in a statement.
The firm's revenue from operations rose 13 percent year-on-year (YoY) to Rs 533.5 crore in Q4, up from Rs 471 crore last year, and Rs 517.5 crore in the previous quarter.
For the full year, the company reported a consolidated operational revenue of Rs 2,066.9 crore in FY25, up 8 percent from Rs 1,919.9 crore in FY24.
“FY25 has been a year of learnings, focus, and disciplined execution. Despite its ups and downs, we’ve seen green shoots emerge, with the business delivering double-digit growth and strong momentum across our key brands,” said Varun Alagh, Chairman and CEO and co-founder, Honasa Consumer.
The company had slipped into the red in the September quarter after transitioning to a direct-to-consumer (D2C) distribution model as part of its Project 'Neev', which necessitated inventory corrections. It had posted a loss of Rs 18.5 crore in Q2 FY25.
Under project Neev, the company had aimed to strengthen its offline go-to-market (GTM) strategy, as its flagship label, Mamaearth, began growing slower than expectations.
“Mamaearth’s strategic pivot has begun to show results, with double-digit category growth across e-commerce and modern trade, driven by building leadership in focus categories, optimized media mix modelling, and awareness-led brand building,” Alagh added.
According to the company, the company's younger brands continued their growth momentum with over 30 percent YoY growth in FY25 - The Derma Co. crossed Rs 100 crore in annualized revenue run rate (ARR) from offline channels.
"As we scale, our vision remains clear—building Honasa into a future-ready house of brands through disruptive innovation, deeper offline penetration, and consumer-centric offerings," Alagh concluded.
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