Honasa Consumer, known for brands including Mamaearth and the Derma Co, posted a consolidated net loss of ₹18.6 crore in Q2-FY25 compared with ₹29.4 crore reported in the year-ago period.. Consolidated revenue from operations was down 6.9 per cent to ₹462 crore. The company said that profit and revenue were adversely impacted due to one-time inventory correction in general trade channel (inventory takeback) as part of distribution alignment strategy.

“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. 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,” said Varun Alagh, Chairman and CEO, Honasa Consumer. He added that strengthening offline GTM capabilities and bringing its flagship brand Mamaearth back on the strong growth trajectory are the company’s top priorities.

Focus categories

“Our House of Brands strategy continues to drive growth, with each of our emerging brands — The Derma Co, Aqualogica, BBlunt and Dr Sheth’s — achieving over 30 per cent year-on-year growth in H1. In core categories such as sunscreens, face washes and serums, our growth in H1 is more than 28 per cent,” he added.

Focus categories of face washes, sunscreens and face serums are currently driving nearly 50 per cent of the company’s business. “Our ambition is to grow these categories and become either the market leaders or be in the top 3 nationally in the next three-five years,” it added.

“Revenue growth, adjusted for inventory correction, in H1FY25 stood at 12.3 per cent, which is much faster than the competition, driving market share gains,” it added.