Honasa Consumer, the parent company of Mamaearth, posted a net loss of Rs 18.5 crore for Q2 FY25, reversing from a Rs 40.2 crore profit in the prior quarter, according to media reports. This marks a significant shift from the Rs 29.4 crore profit recorded during the same period last year.
The company, which also owns direct-to-consumer brands like The Derma Co and BBlunt, attributed the decline to "Project Neev," an ongoing transition to a D2C business model that prompted an inventory correction of Rs 63 crore, as per media reports. This transition has impacted revenue and profitability, yet it is crucial for strengthening our offline go-to-market strategy, stated Varun Alagh, Chairman and CEO of Honasa Consumer, according to media reports. He added that the re-alignment is aimed at bringing Mamaearth back to a robust growth path in the quarters ahead.
Consolidated revenue from operations fell by seven per cent year-on-year to Rs 461.8 crore in Q2, down from Rs 496.1 crore last year and Rs 554.1 crore in Q1 FY25, as per media reports. The company’s expenses reached Rs 506.2 crore, rising from Rs 464 crore a year earlier but showing a decrease from Rs 520.4 crore in the previous quarter.
Despite the dip in performance for Mamaearth, Honasa's younger brands—The Derma Co, Aqualogica, BBlunt, and Dr Sheth’s—achieved over 30 per cent year-on-year growth in the first half of FY25, according to media reports. The company noted that core categories like sunscreens, face washes, and serums grew by more than 28 per cent in H1, driven by shifting consumer preferences in India.
According to media reports, offline sales for key Mamaearth products, including face washes and shampoos, also demonstrated market share gains, with the brand achieving a 125 basis-point increase in value market share year-on-year as of September 2024.
