India's Mamaearth parent Honasa posts Q4 profit on strong demand for skincare products

Honasa Consumer

23/05/2024 12:50

BENGALURU, May 23 (Reuters) - Indian skincare firm
Mamaearth's parent Honasa Consumer  HONA.NS  posted a profit in
the fourth quarter as consumers stocked up on beauty and
personal care products, with retailers doling out offers and
discounts.
    The company, which sells personal care and makeup products,
reported a consolidated net profit after tax of 304.8 million
rupees ($3.7 million) for the three months ended March 31,
compared with a loss of 1.62 billion rupees a year earlier.
    End-of-season sales drove volumes, while high-income urban
consumers stocked in on moisturisers and shampoos, further
boosting top-line growth, said analysts.
    The company, which also sells products of brands like The
Derma Co and Aqualogica, posted a near 22% rise in revenue from
operations to 4.71 billion rupees.
        Indian consumers have been swayed by offers and
discounts on products as inflation continued to hurt
discretionary spending.
  
    Honasa's earnings before interest, tax, depreciation and tax
(EBITDA) margin expanded to 7% from a loss of 0.8% a year
earlier.
    The company said it planned to implement cost efficiency by
transitioning to direct distribution, with a focus on mature
fast moving consumer goods distributors.
    Shares of Honasa closed 1.9% lower ahead of the results.
They fell 8.7% in the January-March quarter.
    

($1 = 83.2275 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru)
 ((AshnaTeresa.Britto@thomsonreuters.com;))