Personal Products company Honasa Consumer announced H1FY25 & Q2FY25 results Revenue in Q2 stood at Rs 462 crore reflecting (6.9%) growth, while revenue adjusted for inventory correction was Rs 525 crore with the growth rate of 5.7% YoY. EBITDA margin, reported for Q2FY25 was (6.6%), with EBITDA Margin adjusted for inventory correction at 4.1%. Profit after tax was Rs (19) crore for Q2FY25. Revenue growth, adjusted for inventory correction, in H1FY25 stood at 12.3%, which is much faster than the competition, driving market share gains. Younger brands like The Derma Co., Aqualogica, BBlunt, and Dr. Sheth’s achieved more than 30% YTD growth in both quarters of the year. Focus categories – face washes, sunscreens and face serums – are growing at 28%+ (YoY growth in H1, adjusted for inventory correction) and continuously gaining market share. They currently drive nearly 50% of the business. Our ambition is to grow these categories and become either the market leaders or be in the top 3 nationally in the next 3-5 years. Project Neev, targeted towards creating a future-ready General Trade distribution, has progressed well – with super-stockist layer removed from Top-50 cities, one-time inventory correction done, and robust DMS (Distributor Management System) implementation leading to real-time inventory visibility and fully automated claims process for distributors. Retail offtake continues to be ahead of the competition. In offline, Mamaearth face washes as well as Mamaearth shampoos gained 125 bps of value market-share YoY as of Sep '24 (as per NielsenIQ). Introduced a new range of moisturizers across Mamaearth, The Derma Co., Aqualogica, and Dr. Sheth’s, catering to diverse skin types and seasonal needs and reinforcing its strategy to meet varied consumer demands. Varun Alagh, Chairman and CEO, Honasa Consumer, said: "Over the past few months, we've been implementing Project Neev to optimize 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. For us, strengthening our offline GTM capabilities and bringing Mamaearth back on the strong growth trajectory are our top priorities. 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% year-on-year growth in H1. In core categories like sunscreens, face washes, and serums, our growth in H1 is more than 28%. We are constantly learning and evolving to meet the changing needs of Indian consumers. Our long-term goals remain unwavering— to shape the future of the beauty and personal care category in India.” Result PDF