Mumbai, May 22 (IANS) Mamaearth’s parent company Honasa Consumer Limited, founded by Ghazal Alagh and Varun Alagh, on Thursday posted a net profit of Rs 25 crore, down 18 per cent from Rs 30 crore in the same quarter last fiscal (Q4 FY24).

For the full financial year (FY25), the beauty and personal care products manufacturer reported a net profit of Rs 72.68 crore, a sharp decline of 34.25 per cent compared to Rs 110.52 crore in FY24.

Revenue from operations, however, saw growth, rising 13 per cent to Rs 534 crore in Q4 FY25 from Rs 471 crore in Q4 FY24.

The company said the growth was driven by improved consumer engagement and expansion of its product offerings.

Despite the revenue growth, the company’s expenses also went up. Total expenses rose to Rs 522.16 crore in Q4 FY25, which was about 15.81 per cent higher than Rs 450.88 crore recorded in the same period last fiscal.

On a sequential basis, expenses were up by 2.93 per cent from Rs 507.3 crore in Q3 FY25.

Commenting on the performance, Varun Alagh, Chairman, CEO, and Co-founder of Honasa Consumer, said, “As we scale, our vision remains clear — building Honasa into a future-ready house of brands through disruptive innovation, deeper offline penetration, and consumer-centric offerings.”

“We’re not just creating brands that lead today but shaping the future of India’s beauty and personal care landscape,” he added.

Earlier in the year, the company had initiated Project ‘Neev’, a strategic shift to a direct distribution model in the top 50 cities of India.

This involved removing the super stockist layer and bringing in Tier 1 distributors for better retail service.

As a result of this transition, the company had recorded a sales return provision of Rs 63.51 crore and recognised inventory and right-to-return assets worth Rs 11.44 crore in the quarter ending September 30, 2024.

However, by the end of FY25, the sales return provision had significantly dropped to Rs 5.20 crore, with no remaining inventory or right-to-return assets, showing a stabilisation in the distribution shift.

–IANS

pk/na