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.

Mamaearth , the popular brand owned by Honasa Consumer Limited, has taken a significant step in employee retention and motivation. The company's Nomination and Remuneration Committee (NRC) has approved the grant of 289,370 stock options to eligible employees under its Employee Stock Options Plan-2018 (ESOP-2018).

Key Details of the Stock Option Grant

Terms and Conditions

The stock options granted come with specific terms and conditions:

1. Exercise Period: Employees can exercise their vested options during their tenure with the company or within 90 days from their last working day.
2. Vesting Schedule: The vesting schedule will be determined by the Nomination and Remuneration Committee.
3. Regulatory Compliance: The ESOP-2018 is in line with SEBI (Share Based Employee Benefits) Regulations, 2014.

Significance for Honasa Consumer Limited

This move by Honasa Consumer Limited, which owns brands like Mamaearth, The Derma Co., and BBlunt, among others, indicates a strategic approach to aligning employee interests with the company's long-term growth. By offering stock options, the company aims to:

• Enhance employee retention
• Motivate staff to contribute to the company's success
• Create a sense of ownership among employees

The stock option grant comes at a time when the company has been expanding its product portfolio and market presence in the personal care and beauty segment.

Regulatory Disclosure

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Honasa Consumer Limited has made the necessary disclosures to the National Stock Exchange of India Limited and BSE Limited. The company has also stated that this information will be available on its official website.

As Honasa Consumer Limited continues to grow in the personal care market, this employee stock option grant may play a role in attracting and retaining talent, potentially contributing to the company's future success and market position.