The shares of Honasa Consumer Limited were trading at ₹297.25, down by 74.30 or 20 per cent on the NSE today at 10:05 am, hitting its 52-week low.
Honasa Consumer Limited, the parent company of Mamaearth, reported a 6.9 per cent decline in revenue to ₹462 crore for the quarter ended September 30, 2024, due to a one-time inventory correction during its distribution model transition. The company posted a net loss of ₹19 crore for the quarter.
The adjusted revenue, accounting for inventory correction, stood at ₹525 crore, reflecting a 5.7 per cent year-on-year growth. The EBITDA margin fell to negative 6.6 per cent, though the adjusted margin was 4.1 per cent.
The beauty and personal care company is implementing “Project Neev,” transitioning from super-stockists to direct distributors in its top 50 cities. While this strategic shift has temporarily impacted Mamaearth’s performance, the company’s emerging brands - The Derma Co., Aqualogica, BBlunt, and Dr. Sheth’s - achieved over 30 per cent year-on-year growth in H1.
The company’s focus categories, including face washes, sunscreens, and face serums, grew by more than 28 per cent year-on-year in H1 2024. According to NielsenIQ data, Mamaearth’s face washes and shampoos gained 125 basis points in offline market share as of September 2024.