Mamaearth , the parent company of popular beauty and personal care brands, has reported its highest-ever quarterly revenue in Q1, signaling robust growth and market expansion. The company also outlined ambitious plans for future growth and margin improvements.

Record-Breaking Q1 Performance

For the quarter ended June 30, Honasa Consumer achieved consolidated revenue from operations of ₹5,952.54 crore, marking a 7.4% year-on-year growth. This represents the company's highest quarterly revenue to date, demonstrating its strong market position and growing consumer demand for its products.

Profit and Margin Improvements

The company reported a consolidated profit after tax of ₹413.25 crore for Q1, showcasing its ability to translate revenue growth into bottom-line results. Notably, Honasa Consumer's EBITDA margin improved to 7.7%, up from 5.1% in the previous quarter, reflecting enhanced operational efficiency.

Focus on Key Categories

Honasa Consumer's growth strategy centers on its focus categories, which now contribute approximately 80% of its revenue. These categories, including face cleansers, shampoos, face serums, suncare, moisturizers, and lipsticks, experienced double-digit year-on-year growth in Q1.

Expanding Offline Presence

The company continues to strengthen its offline distribution network. As of the end of the quarter, Mamaearth products were present in 2,40,113 FMCG retail outlets across India, representing a 20% year-on-year increase in distribution. The company also reported a 50% year-on-year increase in direct outlet billing through distributors in Q1.

Innovation and Product Development

Honasa Consumer maintains a strong focus on innovation, launching new products across its brand portfolio. Notable launches in Q1 included The Derma Co's Peptide-Stem Cell Hair Fall Control Shampoo and Aqualogica's radiance+ Oil Control Fluid Sunscreen, addressing specific consumer needs in hair care and sun protection.

Future Outlook

Looking ahead, Honasa Consumer expects to maintain strong double-digit growth. The company aims to sustain EBITDA margins near 7% and projects annual margin improvements of 100-150 basis points over the next 5-6 years, indicating a focus on both top-line growth and profitability enhancement.

Leadership Changes

To support its growth trajectory, Honasa Consumer has strengthened its leadership team. The company appointed Yatish Bhargava as Chief Business Officer and elevated Avinash Dhagat to Chief Supply Chain Officer and Karan Veer Singh Bajwa to Chief Human Resources Officer.

Varun Alagh, Chairman, Whole Time Director and CEO of Honasa Consumer Limited, commented on the results: "Q1 marked a strong start to the year, with Honasa delivering its highest-ever quarterly revenue of ₹595.25 crore and a record quarterly profit of ₹41.33 crore, supported by a sequential improvement in EBITDA margin to 7.7%."

As Honasa Consumer continues to expand its product portfolio and distribution network, the company appears well-positioned to capitalize on the growing demand for beauty and personal care products in the Indian market. With its focus on innovation, operational efficiency, and strategic growth initiatives, Honasa Consumer aims to maintain its strong performance in the coming years.

Mamaearth , the parent company of brands like Mamaearth and The Derma Co., has reported strong financial results for the first quarter, marking a solid start to the year with record-breaking revenue and profit figures.

Financial Highlights

• Consolidated revenue from operations grew by 7.4% year-over-year to Rs 595.25 crore, the highest quarterly revenue ever recorded by the company.
• Profit after tax (PAT) increased to Rs 41.33 crore, up from Rs 40.26 crore in the same quarter last year, representing a 2.6% growth.
• EBITDA margin improved to 7.7%, showing a significant sequential improvement of 264 basis points.
• Gross profit margin expanded to 71.2%, up 48 basis points year-over-year.

Business Performance

Varun Alagh, Chairman, CEO & Co-founder of Honasa Consumer Limited, commented on the results: "Q1 marked a strong start to the year, with Honasa delivering its highest-ever quarterly revenue of ₹595.25 crore and a record quarterly profit of ₹41.33 crore, supported by a sequential improvement in EBITDA margin to 7.7%."

The company's focus categories, which now contribute over 80% of revenues, posted double-digit growth year-over-year. This growth was driven by strong e-commerce performance and solid offtake growth in modern trade, which saw a 30%+ year-over-year increase.

Brand Performance

• Mamaearth continued to show sequential improvement, with double-digit growth in focus categories across key channels.
• The Derma Co. sustained strong momentum, with its face cleanser category growing over 100% year-over-year, making it the third category after serums and sunscreens to cross ₹100 crore in annual revenue run rate.
• Younger brands in the portfolio, including Aqualogica, Dr. Sheth's, and BBlunt, delivered over 20% growth in Q1.

Distribution Expansion

Honasa Consumer has been actively expanding its offline presence:

• The company's retail footprint expanded to 240,113 FMCG outlets across India, marking a 20% year-over-year increase in distribution.
• Direct outlet billing through distributors increased by over 50% year-over-year in Q1.
• Modern trade channels showed a 20%+ year-over-year offtake growth.

Innovation and Product Development

The company continues to focus on innovation, launching new products across its brand portfolio:

• Mamaearth introduced new variants in face wash and shampoo categories.
• The Derma Co. expanded into the hair care category with a new anti-hair fall shampoo.
• Aqualogica and Dr. Sheth's launched new moisturizers and sunscreens.

Future Outlook

Honasa Consumer remains committed to its strategy of focusing on select, sharply defined category segments within core categories. The company is driving awareness-led brand building and executing an 'always-on' media strategy to maintain growth momentum.

With its strong start, Honasa Consumer Limited appears well-positioned to capitalize on the growing beauty and personal care market in India, leveraging its multi-brand portfolio and expanding distribution network.