Mamaearth Q1: PAT Jumps 63% To INR 40 Cr, Operating Revenue Rises 19% YoY

Honasa Consumer Ltd, the parent entity of D2C brand Mamaearth, posted a 62.9% jump in its profit after tax (PAT) to INR 40.2 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25) from INR 24.7 Cr in the same quarter of previous year on the back of increase in the sales of its beauty products.

Mamaearth’s operating revenue witnessed a strong growth of 19.3% on a year-on-year (YoY) basis and 17.3% sequentially to increase to INR 554 Cr in the reported quarter.

The brand had posted a PAT of INR 30.5 Cr on an operating revenue of INR 471.1 Cr in the preceding March quarter of FY24. 

In the June quarter of last year, Mamaearth’s operating revenue stood at INR 464.5 Cr.

The company said in a statement on Friday (August 9) that its product business grew by 20.3% on the back of underlying volume growth (UVG) of 25.2% in Q1 FY25.

Speaking on its quarterly performance, Varun Alagh, chairman and CEO of Honasa Consumer, said, “Mamaearth continues to win consumer love, driving offtakes and securing a position as the fourth largest face wash brand in modern trade according to Nielsen. Honasa has also captured a strong market share in the face wash category in online while steadily gaining ground offline, driven by its house of brands strategy and innovation capabilities.” 

This category of products achieved about INR 800 Cr GMV ARR for Honasa, said the company.

Alagh said that Honasa’s focus on a data-driven, consumer-centric strategy has led to a 9% contribution from new products to its revenue, while its different partnerships are enhancing its premium positioning in the actives category. 

“As we transition to a more direct distribution model, we are well-positioned to sustain and accelerate our growth trajectory. By leveraging our unique house of brands strategy, purpose-driven approach, and strong emphasis on R&D and innovation, we are determined to solidify our leadership in the ever-evolving BPC FMCG segment,” Alagh added.

It is pertinent to note that besides Mamaearth, Honasa has brands like The Derma Co, Aqualogica, and Ayuga in its portfolio. It has also acquired brands like Dr. Sheth’s, BBlunt, and Momspresso over the years.

Mamaearth claimed it expanded to nearly 2 Lakh FMCG retail outlets across India by June 2024, marking a 30% increase from the previous year.

The company’s consolidated EBITDA improved by 201 basis points YoY to INR 46 Cr in Q1 FY25.

Zooming Into Expenses 

In line with its growth, Honasa’s total expenses jumped 17.4% to INR 520.4 Cr in Q1 FY25 from INR 443.1 Cr in the corresponding quarter last year.

Purchases Of Traded Goods: Comprising over 35% of its total expenses, the company’s spending under this head increased almost 13.4% to INR 183.5 Cr from INR 161.9 Cr in Q1 FY24.

Employee Cost: The D2C startup spent INR 49.4 Cr towards employee benefits in Q1 FY25 as against INR 44.5 Cr in the same period last year.

Ad Expenses: As per its investor presentation, Honasa spent INR 200 Cr in Q1 FY25 towards advertising, a jump of over 22% from INR 163 Cr it spent in this bucket in the previous year’s quarter.

Ahead of the announcement of its quarterly earnings, shares of Mamaearth fell 4.6% on the BSE to end the day at INR 473.35.