Honasa Consumer Q2 loss at Rs 18.57 cr; sales down 7% to Rs 461.8 cr

New Delhi: Honasa Consumer Ltd, which owns FMCG brands such as Mamaearth and The Derma Co, on Thursday reported a consolidated loss of Rs 18.57 crore for the second quarter ended September 30, 2024 on account of inventory correction.

It had reported a profit after tax of Rs 29.43 crore in the year-ago period, the company said in a regulatory filing.

Honasa Consumer's revenue from operations was down 6.9 per cent to Rs 461.82 crore in the second quarter of this fiscal. It was at Rs 461.82 crore in the same period a year ago.

"Revenue in Q2 stood at Rs 462 crore reflecting around 6.9 per cent growth, while revenue adjusted for inventory correction was Rs 525 crore with the growth rate of 5.7 per cent," Honasa Consumer said in its earnings statement.

The EBITDA (earnings before interest, taxes, depreciation, and amortization) margin, reported for the September quarter was down 6.6 per cent and "with EBITDA Margin adjusted for inventory correction at 4.1 per cent," it added.

Honasa Consumer Chairman and CEO Varun Alagh said over the past few months, Honasa Consumer has been working to optimise its distribution model.

"In this quarter, we have taken strategic steps towards transitioning from super-stockists to direct distributors in the top 50 cities. This transition has impacted our revenue and profits, leading to a slowdown for Mamaearth," he said.

However, this realignment will also strengthen offline go-to-market (GTM) strategy in the quarters ahead, setting the stage for our next phase of growth, he added.

Total expenses of Honasa Consumer stood at Rs 506.21 crore, up 9.1 per cent in the September quarter of FY25.

The total income of Honasa Consumer in the September quarter was also down 4.24 per cent to Rs 481.84 crore.

Shares of Mamaearth on Thursday settled at Rs 369.75 on BSE, up 1.48 per cent from the previous close.