August 12, 2024
New Delhi, India
Mamaearth Shares Post Q1 Results
Shares of Honasa Consumer, the parent company of Mamaearth, fell over 6% to ₹444 in Monday’s trade on the BSE, despite a notable 63% year-on-year (YoY) increase in consolidated net profit for the June quarter of FY25. The company reported a profit of ₹40 crore, up from ₹24 crore in the same quarter last year.
Financial Performance: Honasa Consumer’s revenue from operations for the June quarter surged 19% YoY to ₹554 crore, compared to ₹466 crore in Q1 FY24. This robust performance was driven by strong growth across its product segments.
Profit and Margins:
- Profit Before Tax (PBT): The company’s PBT stood at ₹52.4 crore in Q1 FY25, reflecting a significant 54.31% increase from ₹33.95 crore in Q1 FY24.
- EBITDA: EBITDA for the quarter was ₹46 crore, marking a 57% YoY growth. The EBITDA margin improved to 8.3% from 6.3% in the previous year, attributed to better gross margins and operational efficiencies.
Adani Group Shares Plunge Up To 7% Following Hindenburg-SEBI Chief Conflicts
Business Growth: Honasa Consumer reported a 20.3% growth in its product business with an underlying volume growth (UVG) of 25.2%. The company achieved an approximate ₹800 crore GMV ARR in the face wash category, driven by its innovative House of Brands strategy and strong online presence.
Market Position: Honasa Consumer has secured a strong market share in the face wash category, both online and offline. The company’s chairman and CEO, Varun Alagh, highlighted the brand’s success in becoming the fourth largest face wash brand in modern trade according to Nielsen.
Strategic Initiatives: The company has adopted a data-driven, consumer-centric strategy, contributing 9% of revenue from new products. Partnerships, such as with Dr. Vanita Rattan for the Skin Renew by Dr. V range under The Derma Co, are enhancing its premium positioning in the actives category. The transition to a more direct distribution model is expected to support sustained growth.
Voltas Q1 Results: Profit Jumps Two-Fold to ₹335 Crore on Record AC Sales
Company Profile: Honasa Consumer is recognized as the largest digital-first beauty and personal care company with a diverse portfolio of six brands. The company is strategically positioned to capture growth trends in the BPC FMCG market through innovative, data-based approaches and strong omnichannel distribution.
Market Reaction: Despite the positive financial results, Honasa Consumer’s shares declined by 4.63% to ₹451.65 on the BSE, reflecting cautious investor sentiment.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
