Mamaearth’S Parent Firm Honasa Slips Into Losses In Q2, Revenue Drops 7 Pc
Date
11/14/2024 8:15:15 AM
(MENAFN- IANS) New Delhi, Nov 14 (IANS) Honasa Consumer Ltd, the parent company of direct-to-consumer (D2C) brand Mamaearth, on Thursday reported losses to the tune of Rs 18.6 crore in the July-September period (Q2 FY25), from the profit of Rs 29.4 crore in the same quarter last year.
In the first six months of current fiscal (FY25), the Mamaearth company saw its profit nosedive 60 per cent at Rs 216.84 crore, from Rs 541.53 crore in the same period last fiscal, owing to dip in scale and increased expenditure.
Notably, the company had achieved record-high profits of Rs 40 crore in Q1 FY25.
The company's revenue from operations also decreased 6.9 per cent to Rs 462 crore in Q2 from Rs 496 crore in Q2 FY24, according to its consolidated financial statements.
On a quarterly basis, Mamaearth's parent company saw its operational revenue decline 17 per cent from Rs 554 crore in Q1 FY25.
The employee benefits and other overheads pushed the total expenditure up by 9.1 per cent (on-quarter) to Rs 506 crore in Q2 FY25 from Rs 464 crore in Q2 FY24.
The company said that face washes, sunscreens and face serums grew at 28 per cent in the first half this fiscal, adjusted for inventory correction) and continuously gaining market share.
“They currently drive nearly 50 per cent of the business. Our ambition is to grow these categories and become either the market leaders or be in the top 3 nationally in the next 3-5 years,” said Honasa.
Honasa said it has taken strategic steps towards transitioning from super-stockists to direct distributors in top 50 cities.
“However, this realignment will also strengthen offline go-to-market (GTM) strategy in the quarters ahead, setting the stage for our next phase of growth. For us, strengthening our offline go-to-market (GTM) capabilities and bringing Mamaearth back on the strong growth trajectory are our top priorities,” said Varun Alagh, Chairman and CEO, Honasa Consumer Limited.
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