Shares of Honasa Consumer, which runs beauty and personal care brands like Mamaearth, rallied up to 7.6% to Rs 435 on BSE on Tuesday as it announced that its skincare brand The Derma Co. has achieved an annual revenue run rate (ARR) of Rs 500 crore.
Shares of Honasa have given 18.4% returns to its investors in the last month, while the stock rallied 15% in the last week.
For the third quarter, Honasa Consumer had reported a 24% growth in PAT to Rs 289 crore, which was Rs 151.5 crore in the same period last year.
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In the last fiscal year, The Derma Co recorded sale of over 1 crore units, reflecting the strong demand for its products among Indian consumers. Competing in the active ingredients skincare space, the brand faces competition from both domestic players such as Minimalist and Plum, as well as global brands like The Ordinary and Cetaphil.
The company\’s success is attributed to its deep understanding of consumer needs and the ability to innovate swiftly to deliver differentiated propositions, said Varun Alagh, co-founder, chairman, and chief executive of Honasa Consumer.
This approach has evidently translated into substantial growth, with the company reporting a remarkable 265% increase in consolidated net profit to Rs 26 crore for the quarter ended December, he further added.
The achievement is attributed to The Derma Co\’s strategy of offering specialized skincare products tailored specifically for Indian skin types and weather conditions. With a focus on active ingredients skincare, the brand has successfully tapped into a niche market segment, catering to consumers seeking solutions for specific skincare concerns.
The success of The Derma Co adds to Honasa Consumer\’s growing portfolio of brands, which includes Mamaearth, Bblunt, Ayuga, Aqualogica, Dr Sheth’s, and the recently launched Staze. Notably, Aqualogica, the company\’s hydration-based skincare brand, crossed an ARR of Rs 150 crore in August last year, further demonstrating Honasa Consumer\’s ability to capture diverse segments within the beauty and personal care market.
As the company prepares to announce its fourth-quarter and fiscal year 2024 results, all eyes are on its trajectory and potential for further growth in the competitive market landscape.
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