Honasa Consumer records 20.3% growth, volumes up 25.2%

Honasa Consumer Ltd. has registered product business growth of 20.3% with an underlying volume growth (UVG) of 25.2%. The EBITDA margin expanded by 201 basis points (bps) y-o-y to 8.3%, resulting in an EBITDA of Rs 46 crore.

Sharing his thoughts on the financial achievements and business performance in Q1FY25, Varun Alagh, Chairman and CEO, Honasa Consumer Limited, comments, “Reflecting on the highlights of Q1 FY25, we are delighted to report that Honasa has demonstrated remarkable resilience and growth this quarter, underscored by a strong operating performance and improved profitability. Mamaearth continues to win consumer love, driving offiakes and securing a position as the fourth largest face wash brand in modern trade according to Nielsen. Honasa has also captured a strong market share in the face wash category in online while steadily gaining ground offine, driven by its House of Brands strategy and innovation capabilities. Our focus on a data-driven, consumer-centric strategy has led to a remarkable 9% contribution from new products to our revenue, while our partnerships, like with Dr. Vanita Rattan to launch ‘Skin Renew by Dr. V’ range in The Derma Co, are enhancing our premium positioning in the actives category. As we transition to a more direct distribution model, we are well-positioned to sustain and accelerate our growth trajectory. By leveraging our unique House of Brands strategy, purpose-driven approach, and strong emphasis on R&D and innovation, we are determined to solidify our leadership in the ever-evolving BPC FMCG segment.”

Financial Overview

Q1FY25 consolidated revenue stood at Rs 554 Crore Maintained its growth trajectory with a volume-led 20.3% product business growth Q1FY25 consolidated EBITDA improved by 201 bps at INR 46 Crore. This is driven by improvement in Gross Margins and scale led efficiencies. Q1FY25 consolidated PAT stood at INR 40 Crore, with a growth of 62.9% YoY Business continues to be capital efficient, with a negative working capital cycle of 12 days

Business Overview

Continued growth momentum in Q1FY25 with increasing profitability Achieved a strong 25.2% UVG, signifying increasing consumer demand. Mamaearth emerges as one of the fastest growing brands as per Nielson in key categories like face wash and shampoo in the offline channel in Q1FY25 and become the 4th largest face wash brand in modern trade Mamaearth reached nearly 2lakh FMCG retail outlets in India as of June'24, increasing distribution up by 30% YoY Honasa has captured a strong market share in the face wash category in online while steadily gaining ground offline, driven by its House of Brands strategy and innovation capabilities. The category achieved approximately INR 800 crore GMV ARR for Honasa New products accounted for around 9% of Q1FY25 Revenue from Operations Key innovations this quarter include Face Wash, Mamaearth Rice Water Dewy Sunscreen, The Derma Co Snail Peptide 96 Hydrating Serum, Aqualogica Glow+ Infused Tinted Sunscreen, Dr Sheth’s Kesar & Kojic Acid Serum, and Bblunt Refresh Dry Shampoo Entering prestige pricing segment with India’s first international dermatologist collaboration in the actives category through strategic partnership between The Derma Co. & Dr. Vanita Rattan for ‘Skin Renew by Dr. V’ Range Devising strategies to co-create sun care category in modern trade channels