Honasa Consumer, the parent company behind , clocked a de-growth of 7% in its operating revenue to Rs 461.82 crore in the quarter ended September 2024 versus Rs 496.1 crore earned a year ago, the company said in an exchange filing.
The Varun Alagh- and Ghazal Alagh-led company has been clocking slower revenue growth across quarters. It posted a 19% rise in its operating revenue in Q1 FY25 and 21% YoY growth in Q4 FY24.
Honasa, which is also the parent company of popular brands like The Derma Co, Aqualogica, Dr Sheth’s, and BBlunt, posted a loss of Rs 18.71 crore in the Q2 FY25, down from a profit of Rs 29.78 crore in the corresponding quarter in the previous year.
“Over the past few months, we’ve been implementing Project Neev to optimise our distribution model. In this quarter, we have taken strategic steps towards transitioning from super-stockists to direct distributors in the top 50 cities. This transition has impacted our revenue and profits, leading to a slowdown for Mamaearth,” noted Varun Alagh, Chairman and CEO, Honasa Consumer Limited.
Its bottomline was hurt by a double whammy of falling revenue and higher expenses, which rose 9% year-on-year due to higher employee benefits, purchase of traded goods, and finance costs.
The omnichannel beauty and personal care player, in its previous earnings call, had highlighted the company’s plans of inventory pipeline correction to ramp up its offline distribution.
“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 GTM capabilities and bringing Mamaearth back on the strong growth trajectory are our top priorities,” Alagh further added.
Shares of the company were trading 3.77% higher at Rs 378 apiece on the NSE at the end of trading on Thursday.
