Honasa Consumer Ltd, the parent company of popular FMCG brands Mamaearth and The Derma Co, reported a consolidated loss of INR 18.57 crore for the second quarter ended September 30, 2024.
This contrasts with the INR 29.43 crore profit recorded in the same period last year.
Mamaearth’s adjusted revenue stands at INR 525 Cr
The company’s revenue from operations declined 6.9% to INR 461.82 crore, down from INR 496.02 crore in the year-ago period. However, Honasa Consumer clarified that adjusted revenue, considering inventory correction, stood at INR 525 crore, reflecting 5.7% growth.
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Meanwhile, Varun Alagh, Chairman and CEO of Honasa Consumer, stated, “Over the past few months, we have been working 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.”
Despite the short-term setback, Alagh expressed optimism about the long-term benefits of the distribution model realignment. “This realignment will also strengthen our offline go-to-market strategy in the quarters ahead, setting the stage for our next phase of growth,” he said.
Mamaearth expenses surges to INR 506 Cr
Notably, the company’s total expenses increased 9.1% to INR 506.21 crore, while total income declined 4.24% to INR 481.84 crore. Honasa Consumer’s EBITDA margin dropped to 6.6%, but adjusted EBITDA margin for inventory correction stood at 4.1%.
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Moving forward, the company’s efforts to revamp its distribution strategy aim to enhance its offline presence and drive future growth. Despite temporary challenges, Honasa Consumer remains committed to expanding its FMCG portfolio and strengthening its market position through strategic initiatives.
