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Shares of Mamaearth 's parent company, Honasa Consumer , were locked in the 20% lower circuit limit, at Rs 297.25—its 52-week low—after the company announced its Q2FY25 earnings on Thursday, after market hours. The company reported a consolidated net loss of Rs 19 crore, compared to a profit after tax (PAT) of Rs 29 crore in the year-ago period, due to a one-time inventory correction amid a shift in its distribution model.
The revenue from operations stood at Rs 462 crore which was down by 7% over Rs 496 crore posted by the Mamaearth brand operator in the corresponding quarter of the previous financial 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 top 50 cities.
This transition has impacted our revenue and profits, leading to a slowdown for Mamaearth," said Varun Alagh, Chairman and CEO of Honasa Consumer. The stock had ended at Rs 378 on the NSE on Thursday, up by Rs 13.75 or 3.
77%. On Friday the markets were closed on account of Guru Nanak Jayanti. The company's revenue figures were also down on a quarter-on-quarter basis while the net loss in the July-September quarter was also on a QoQ basis.
In the previous quarter, Honasa Consumer had reported a net profit of Rs 40.25 crore while its topline stood at Rs 554 crore which was a 17% decline. Astrology Vastu Shastra Course By - Sachenkumar Rai, Vastu Shashtri View Program Artificial Intelligence(AI) AI and Analytics based Business Strategy By - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCI View Program Office Productivity Advanced Excel Course - Financial Calculations & Excel Made Easy By - Anirudh Saraf, Founder- Saraf A & Associates, Chartered Accountant View Program Strategy ESG and Business Sustainability Strategy By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader View Program Web Development Advanced Java Mastery: Object-Oriented Programming Techniques By - Metla Sudha Sekhar, IT Specialist and Developer View Program Data Science SQL for Data Science along with Data Analytics and Data Visualization By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Leadership Validating Your Startup Idea: Steps to Ensure Market Fit By - Dr.
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Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Company's Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin was reported for Q2FY25 at 6.6%, with EBITDA margin adjusted for inventory correction at 4.1%.
Revenue growth, adjusted for inventory correction, in H1FY25 stood at 12.3%, which is much faster than the competition, driving market share gains, the company filing said. Younger brands like The Derma Co.
, Aqualogica, BBlunt, and Dr. Sheth’s achieved more than 30% YTD growth in both quarters of the year. Focus categories like face washes, sunscreens and face serums are growing at 28%+ (YoY growth in H1, adjusted for inventory correction) and continuously gaining market share, the company claimed.
"They currently drive nearly 50% of the business. Our ambition is to grow these categories and become either the market leaders or be in the top 3 nationally in the next 3-5 years," it said. However, Alagh said that the company's realignment through Neev will also strengthen offline go-to-market (GTM) strategy in the quarters ahead, setting the stage for its next phase of growth.
"For us, strengthening our offline GTM capabilities and bringing Mamaearth back on the strong growth trajectory are our top priorities," he added. Retail offtake continues to be ahead of the competition, Honasa said, adding that in offline, Mamaearth face washes as well as Mamaearth shampoos gained 125 bps of value market-share YoY as of September 2024 (as per NielsenIQ). ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own.
These do not represent the views of Economic Times).
