Latest news with #HonasaConsumerLtd
Mint
a day ago
- Business
- Mint
Mamaearth's parent got its hands dirty for a distribution overhaul—it's painful, but paying off
Bengaluru: After nearly four painful quarters, Honasa Consumer Ltd's decision to transform its distribution model—from super-stockists to direct distributors, following in the footsteps of consumer goods giants—is starting to bear fruit. The parent company of beauty brand Mamaearth saw revenue contribution from its direct distributors nearly double in the January-March quarter, resulting in a 13% year-on-year revenue growth to ₹533 crore. While Honasa's fourth-quarter profit fell 17% from a year earlier to ₹25 crore, its distribution model reached more than 100,000 distributors in 2024-25, doubling in one year. 'All of this has happened because of the direct distribution transition that we have done. Our direct distributor contribution has gone from 38% to 71%, which is what we had planned for as we ended the year," Varun Alagh, co-founder and chief executive of Honasa, said during a post-earnings call with analysts last month. Mamaearth's distribution model transition was complete, he added. Also read | Why Mamaearth needs to review its offline distribution strategy However, the process, which stretched for about a year, proved cumbersome for some distributors, especially those with piles of unsold products in tier-2 and tier-3 regions where stock moves slowly. 'My ties with Mamaearth ended about four months ago but the process went on for very long. We were hoping it could have happened more smoothly," said a distributor in Maharashtra, asking not to be named. A distributor in Gurugram, who stopped working with Honasa late last year, said the company tried to make the process as easy as possible but the scale of the shift made it difficult. 'I work with large consumer companies so I know the kind of effort it takes to do something like this in offline distribution. I knew it wouldn't be easy," this person added. According to industry experts, Honasa needs to continue working on its relationships with distributors, especially those reporting excessive inventory and delays in replacing damaged and expired stock. 'Offline distribution is not child's play, especially for a consumer-facing brand," said Satish Meena, advisor at market research firm Datum Intelligence. 'To reach scale and efficiency, it's important to develop long-term relationships with distributors, including those you no longer do business with." Also read | Darling to doubtful: The story of Honasa's struggles Honasa's painful path Alagh had warned of such challenges very early on. In May last year, Alagh said the company's revenue would be impacted in the short term as it worked on improving its processes across the value chain. Mamaearth's earlier distribution strategy involved super stockists, a set of intermediaries who would distribute products sourced from the company to sub-stockists and select retailers. However, Alagh said in May last year that dealing with super stockists had resulted in poor-quality sales and a lack of data. So under 'Project Neev', Honasa shifted to a direct distribution model seeking more control. The project's implementation, however, cost the company nearly ₹70 crore in July-September, leading to a quarterly loss of ₹18.5 crore. On the plus side, the distribution overhaul is said to have helped Honasa scale up its younger brands. In the March quarter, Honasa's The Derma Co brand touched ₹100 crore in annualized revenue rate (ARR)—annual projection based on current revenues—in offline trade, which includes general and modern trade. 'This is a healthy sign that the distribution system is able to distribute more brands, as well as (that) the brand is seeing traction in offline, and that will also become one of the levers of growth for the brand in coming years," Alagh said last month. Also read | Honasa to cut inventory holding period for Mamaearth distributors by streamlining supply chain Mamaearth's products are priced lower than The Derma Co's as these target different needs. Mamaearth's face washes, shampoos, etc., are meant for daily use while The Derma Co focuses on special ingredients for skincare. The Derma Co has in fact trotted ahead of Honasa's flagship brand Mamaearth in the offline journey, creating a pipeline for its peers, including Aqualogica and Dr Sheth's, into the general trade channel, according to Meena of Datum Intelligence. 'Mamaearth is banking on its offline strategy, but it's not going to be easy. For offline to work well, distributors and retailers also need to push the product and sell to the customer. It's a different scenario for The Derma Co, where its USP of active ingredients has created decent recall among consumers," said Meena. Also read | Honasa denies distributors' claims of unsold stock, says secondary dues have been cleared An ambitious target The direct distribution model is followed largely by well-cemented consumer goods companies including Hindustan Unilever Ltd and ITC Ltd. Striking valuable partnerships with well-connected distributors in different regions of the country has enabled these firms to solidify their presence beyond tier-1 markets. However, even established companies have had to realign their distribution models. 'Honasa is not the first to go through this pain. History suggests that companies do come back on track, and we are hopeful," investment firm Jefferies said in a note in September. 'In this context, it is useful to note that several large FMCG (fast-moving consumer goods) firms have gone through distribution realignment, despite decades of existence." Alagh said last month that Honasa aimed to add at least 50,000 outlets to its direct distribution or general trade channel, indicating a path for also scaling up Bblunt, the company's hair care products and salon brand, and its teen-focused cosmetics range Staze. 'So we would want to see this number, which is 100,000, to get to 150,000 as we exit the next year, 12 months from now," Alagh said. The Honasa stock is down nearly 41% from its lifetime high of ₹547 per share reached in September. On Monday, the stock inched up 0.94% on NSE to close at ₹323.00.
Business Standard
23-05-2025
- Business
- Business Standard
Volumes spurt at SBI Life Insurance Company Ltd counter
SBI Life Insurance Company Ltd registered volume of 2.13 lakh shares by 10:46 IST on BSE, a 23.68 fold spurt over two-week average daily volume of 8996 shares Honasa Consumer Ltd, TBO Tek Ltd, Kajaria Ceramics Ltd, Tech Mahindra Ltd are among the other stocks to see a surge in volumes on BSE today, 23 May 2025. SBI Life Insurance Company Ltd registered volume of 2.13 lakh shares by 10:46 IST on BSE, a 23.68 fold spurt over two-week average daily volume of 8996 shares. The stock rose 1.38% to Rs.1,783.80. Volumes stood at 4697 shares in the last session. Honasa Consumer Ltd notched up volume of 5.74 lakh shares by 10:46 IST on BSE, a 19.81 fold spurt over two-week average daily volume of 28967 shares. The stock rose 15.30% to Rs.317.60. Volumes stood at 19676 shares in the last session. TBO Tek Ltd saw volume of 35974 shares by 10:46 IST on BSE, a 6.85 fold spurt over two-week average daily volume of 5249 shares. The stock increased 4.46% to Rs.1,252.80. Volumes stood at 5251 shares in the last session. Kajaria Ceramics Ltd registered volume of 6 lakh shares by 10:46 IST on BSE, a 5.91 fold spurt over two-week average daily volume of 1.01 lakh shares. The stock rose 0.10% to Rs.995.00. Volumes stood at 37235 shares in the last session. Tech Mahindra Ltd recorded volume of 1.84 lakh shares by 10:46 IST on BSE, a 5.52 times surge over two-week average daily volume of 33358 shares. The stock gained 2.00% to Rs.1,598.20. Volumes stood at 39650 shares in the last session.
Business Upturn
23-05-2025
- Business
- Business Upturn
Honasa Consumer shares jump 10% as Q4 revenue rises 13% YoY to Rs 533.5 crore
By Aman Shukla Published on May 23, 2025, 09:19 IST Shares of Honasa Consumer Ltd, parent company of Mamaearth, jumped over 10% in morning trade following the announcement of its Q4 FY25 results. As of 9:18 AM, the shares were trading 10.72% higher at Rs 304.67. Despite a 17.8% year-on-year (YoY) decline in net profit to ₹25 crore, down from ₹30 crore, investor sentiment remained positive, driven by strong revenue growth. The company reported a 13.3% YoY increase in revenue, reaching ₹533.5 crore compared to ₹471 crore in the same quarter last year. This reflects continued consumer demand and solid performance across its brand portfolio. However, profitability was under pressure, with EBITDA dropping 18.5% YoY to ₹26.9 crore. The operating margin also contracted to 5%, from 7% a year ago, highlighting cost pressures or increased investment in growth initiatives. Commenting on the results, Chairman and CEO Varun Alagh called FY25 a year of 'learnings, focus, and disciplined execution.' He emphasized the company's strategic pivot and the strong momentum seen in its newer brands. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Business Standard
23-05-2025
- Business
- Business Standard
Honasa Consumer Ltd Spikes 9.22%
Honasa Consumer Ltd has added 27.59% over last one month compared to 1.98% fall in BSE Fast Moving Consumer Goods index and 0.97% rise in the SENSEX Honasa Consumer Ltd rose 9.22% today to trade at Rs 300.85. The BSE Fast Moving Consumer Goods index is up 0.57% to quote at 20471.59. The index is down 1.98 % over last one month. Among the other constituents of the index, Varun Beverages Ltd increased 2.69% and Dwarikesh Sugar Industries Ltd added 1.89% on the day. The BSE Fast Moving Consumer Goods index went up 1.86 % over last one year compared to the 7.26% surge in benchmark SENSEX. Honasa Consumer Ltd has added 27.59% over last one month compared to 1.98% fall in BSE Fast Moving Consumer Goods index and 0.97% rise in the SENSEX. On the BSE, 46015 shares were traded in the counter so far compared with average daily volumes of 37632 shares in the past one month. The stock hit a record high of Rs 546.5 on 10 Sep 2024. The stock hit a 52-week low of Rs 190 on 07 Apr 2025.
