Honasa Consumer, the parent company of beauty and personal care (BPC) brand Mamaearth, announced that its skincare brand, The Derma Co, supported by active ingredients, has achieved an annual revenue run rate (ARR) of Rs 500 crore. ARR is a metric that predicts a company’s financial performance over a year based on past earnings data.
The company attributes this success to the development of brands offering specialized products tailored for Indian skin and weather conditions. It underscores product differentiation in categories like face serums, hydrating sunscreens, sunscreen sticks, and acne patches. During the last fiscal year, the company sold over 1 crore units.
In the active ingredients skincare segment, The Derma Co competes with brands like Minimalist, backed by Peak XV Partners, and Plum, backed by A91 Partners, as well as global brands such as The Ordinary and Cetaphil.
During its earnings presentation for the October-December quarter, Honasa announced that The Derma Co had achieved profitability at the operating level for the first nine months of fiscal 2024.
Honasa Consumer manages seven brands, including Mamaearth, The Derma Co, Bblunt, Ayuga, Aqualogica, Dr Sheth’s, and the recently introduced color cosmetics brand Staze.
In August of the previous year, the company’s hydration-based skincare brand, Aqualogica, surpassed an annual revenue run rate (ARR) of Rs 150 crore.
“Our success is an output of in-depth consumer study of the evolving consumer demands and being able to innovate swiftly to deliver differentiated propositions to our consumers. This focus on excellence has helped us set new benchmarks across the active ingredient-based skincare segment,” said Varun Alagh, cofounder, chairman and chief executive of Honasa Consumer Limited.
The company reported a remarkable 265% growth in its consolidated net profit to Rs 26 crore for the quarter ended December, compared to Rs 7.1 crore a year ago. Revenue from operations in the third quarter increased by 28% year-on-year (YoY) to Rs 488 crore, compared with Rs 382 crore in the same quarter of last year.
