Honasa Consumer Limited — Updates, 14-11-2024: Press Release

Honasa Consumer Ltd. reported a decline in revenue and EBITDA for Q2 due to a one-time inventory correction while shifting its distribution model. Total revenue for the quarter was INR 462 Cr, reflecting a 6.9% drop, but adjusted for the inventory correction, revenue rose to INR 525 Cr with a 5.7% year-on-year growth. The EBITDA margin was reported at -6.6%, while adjusting for inventory showed a 4.1% margin, with a profit after tax of INR (19) Cr. Despite the challenges, the company's House of Brands strategy continues to drive growth, with emerging brands achieving over 30% year-over-year growth. Key categories like face washes and sunscreens also experienced strong performance, growing by over 28%. The ongoing Project Neev aims to enhance the distribution model by eliminating the super-stockist layer in major urban areas, promising a more robust infrastructure to support future growth and market share gains. Investors should watch for potential recovery as the company focuses on repositioning Mamaearth and strengthening its offline presence.