Mamaearth , the parent company of brands like Mamaearth, has reported a strong performance for the second quarter, with revenue growth exceeding 22% year-over-year. The company also announced a strategic investment in the oral care segment.

Financial Highlights

Honasa Consumer delivered a robust financial performance in Q2:

• Revenue from operations grew by 22.5% year-over-year to ₹566.00 crore on a like-for-like basis
• EBITDA remained stable at ₹48.00 crore, with an EBITDA margin of 8.4%
• Profit After Tax (PAT) stood at ₹39.00 crore
• Underlying Volume Growth (UVG) remained strong at 16.7%

Brand Performance

The company's flagship brand, Mamaearth, showed signs of recovery:

• Mamaearth's growth returned to positive territory
• Face cleansers category saw a 123 basis points market share gain
• Rice Face Wash entered the ₹100.00 crore Annual Recurring Revenue (ARR) club

Other brands in Honasa's portfolio also performed well:

• The Derma Co. achieved a milestone of ₹750.00 crore ARR
• Younger brands, including The Derma Co., Aqualogica, Dr. Sheth's, BBlunt, and Staze, grew by over 20% year-on-year

Distribution Expansion

Honasa Consumer continued to strengthen its offline presence:

• General Trade distribution saw a 35%+ year-on-year increase in direct outlets billed during H1
• The company is transitioning to a direct distribution model across top 50 cities

Strategic Acquisition

In a move to expand its addressable market, Honasa Consumer announced the acquisition of a 25% stake in Couch Commerce Private Limited, which owns the oral care brand 'Fang Oral'. Key details of the acquisition include:

• Investment: ₹10.00 crore through primary investment
• Target company focus: Prestige oral care, specializing in teeth whitening and everyday oral wellness products
• Rationale: Early-stage investment in a sizeable and fast-growing category

Management Commentary

Varun Alagh, Chairman, CEO & Co-founder of Honasa Consumer Ltd., commented on the results: "Q2 marked another quarter of steady growth for Honasa, with revenue up 22.5% YoY and EBITDA holding stable at INR 48 Cr, reflecting the strength and consistency of our growth playbook. Our focus categories continued to contribute over 75% of total revenues, reaffirming the success of our category-first strategy."

Alagh also highlighted the company's expansion into new segments, including the launch of Luminéve, a prestige skincare brand, and the investment in Fang Oral.

Outlook

Honasa Consumer remains focused on scaling as a House of Purposeful Brands, built on innovation and intent. The company aims to shape the future of beauty and personal care in India through strategic investments and brand expansions.

As the company continues to diversify its portfolio and strengthen its market position, investors will be watching closely to see how these initiatives may translate into sustained growth and profitability in the coming quarters.

Mamaearth , the parent company of brands like Mamaearth and The Derma Co., has reported a strong performance for the second quarter, with revenue growth and strategic expansions highlighting the period.

Financial Highlights

Honasa Consumer posted a 22.5% year-over-year increase in revenue from operations on a like-for-like (LFL) basis, reaching ₹566.00 crore for Q2. The company's gross profit margin improved to 71.9%, underlining healthy top-line growth with improving margins.

The company reported a profit after tax (PAT) of ₹39.00 crore for the quarter, compared to a loss in the same period last year. EBITDA remained stable at ₹48.00 crore, representing an EBITDA margin of 8.4%.

Operational Performance

Honasa's underlying volume growth (UVG) remained strong at 16.7% for Q2, showcasing the resilience and volume-led growth of the core business. The company's focus categories, which include face cleansers, shampoos, face serums, suncare, moisturizers, baby products, and lipsticks, now contribute over 75% to its revenues, up from about 70% last year.

Brand Performance

Mamaearth, the company's flagship brand, has shown signs of recovery. According to NielsenIQ data, Mamaearth face cleansers gained 123 basis points in market share, while shampoos maintained their position. The brand's Rice Facewash entered the ₹100.00 crore annual recurring revenue (ARR) club, joining Ubtan and Vitamin C variants.

The Derma Co., another key brand in Honasa's portfolio, achieved significant milestones. It was recognized as India's No. 1 sunscreen brand for calendar year 2024 by Euromonitor and crossed the ₹750.00 crore ARR mark with a high single-digit EBITDA profile.

Strategic Developments

Honasa Consumer has made strategic moves to expand its market presence:

1. Launch of Luminéve: The company has entered the prestige skincare segment with Luminéve, a night-focused skincare brand launched exclusively on Nykaa.

2. Investment in Fang Oral Care: Honasa announced the acquisition of a 25% stake in Couch Commerce Private Limited, which owns the 'Fang Oral Care' brand, for ₹10.00 crore. This move marks Honasa's entry into the oral care segment, focusing on teeth whitening and everyday oral wellness products.

3. Distribution Expansion: The company has deepened its general trade distribution, with a 35%+ year-over-year increase in direct outlets billed during H1.

4. Innovation Focus: Honasa continues to strengthen its product portfolio through innovations across its brands, including the introduction of in-vivo tested sunscreens and enhanced Vitamin C serums.

Management Commentary

Varun Alagh, Chairman, CEO & Co-founder of Honasa Consumer Ltd., stated, "Q2 marked another quarter of steady growth for Honasa, with revenue up 22.5% YoY and EBITDA holding stable at INR 48 Cr, reflecting the strength and consistency of our growth playbook."

Alagh also highlighted the company's focus on scaling Honasa as a House of Purposeful Brands, built on innovation and intent, shaping the future of beauty and personal care in India.

Future Outlook

With its recent strategic moves and continued focus on innovation, Honasa Consumer appears positioned for further growth in the beauty and personal care market. The company's expansion into new categories like prestige skincare and oral care, coupled with its strong performance in existing segments, suggests a diversified approach to capturing market opportunities.

As Honasa Consumer continues to execute its growth strategy, investors and industry observers will likely keep a close watch on the company's ability to maintain its growth trajectory and profitability in the competitive beauty and personal care sector.