Slide 1: Exchange filing cover letter for investor presentation
November 14, 2024 To, To, Listing Department Listing Department NATIONAL STOCK EXCHANGE OF INDIA LIMITED BSE LIMITED Exchange Plaza, C/1, Block G, P. J. Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Mumbai – 400 051 Mumbai – 400 001 Scrip Symbol: HONASA Scrip Code: 544014 Sub: Investor Pre
Slide 2: Investor Communication Q2 & H1 FY25
STRICTLY PRIVATE AND CONFIDENTIAL Q2 & H1 FY25 Q1FY25 Q4 & FY24 Results Investor Communication Q2 & H1 FY24
Slide 3: Disclaimer
Disclaimer By accessing, viewing or attending this presentation, you accept and agree to be bound as follows: This Presentation is prepared by Honasa Consumer Limited (“Company”) and contains certain forward-looking statements including those describing Company’s strategies, strategic direction, obj
Slide 4: Table of Contents
Table of Contents 1 Crystal-Gazing the Future of I-Beauty The landscape is evolving, and we need to evolve with it; Change is 2 the only constant 3 Financial Snapshot 4 Business Highlights 3
Slide 5: Crystal-Gazing the Future of i-Beauty
Crystal-Gazing the Future of i-Beauty 1 “Sun” continues to shine on I-Beauty | Sun care expected to become an INR 5,000Cr category by 2028 2 Premiumization in Face Wash category 3 Serumization of Skin care will make Face serums a 5000+ Cr Category STRICTLY PRIVATE AND CONFIDENTIAL Recap from previou
Slide 6: Face Serum in India expected to become an INR 5,600+ cr category by 2028
Face Serum in India is expected to become an INR 5,600+ cr category by 2028 1 2 3 4 1 Increased penetration driven by rising consumer awareness… 2 …set to make Serum a 5,600 cr category by 2028 Skincare % of BPC Serum % of Skin Care (in INR cr) 43.0% CAGR 5,686 20.4% 22% 17.0% 19.0% 10.0% 7.1% Korea
Slide 7: The landscape is evolving and we need to evolve with it, change is the only constant
The landscape is evolving and we need to evolve with it, change is the only constant 6
Slide 8: Consumer buying behavior, distribution channels and media habits are evolving
Consumer buying behavior, distribution channels and media habits are evolving 1 2 3 4 Content creators Rise of Quick Indian consumers Enhanced driving category Media habits and Commerce is not are shifting from consumer social education through consumption are only changing family-oriented to connec
Slide 9: In light of these changes, we are learning and evolving as well
1 2 3 4 In light of these changes, we are learning and evolving as well What got us here will not Offline GTM is muscle, not Product superiority is the take us there just a skill next big moat • Redefining playbooks for scale beyond INR 1000 • Reorganize the offline • Investing in R&D cr especially
Slide 10: Financial Snapshot
Financial Snapshot 9
Slide 11: Exceptional one-time GT inventory takeback impacted Q2FY25 growth and margins
Exceptional one-time GT inventory takeback (Distribution Transition) has 1 2 3 4 impacted growth as well as profit margins for Q2FY25 Reported Revenue from Operations Adjusted Revenue from Operations Reported EBITDA % Adjusted for Inventory correction INR 462 Cr INR 525 Cr (6.6)% Adjusted YoY Growth
Slide 12: Continue to deliver better than industry growth leading to market share gains
Continue to deliver better than industry growth leading to market share gains 1 2 3 4 Revenue (INR Cr) EBITDA Margin 12.3% YoY Growth 6.3% 5.8% YoY Growth 1,016 1,079 1.5% H1FY25 H1FY25 H1FY25 H1FY25 (Reported Revenue) (Adjusted1 Revenue) (Reported EBITDA Margin) (Adjusted1 EBITDA Margin) 1. Adjuste
Slide 13: Business Highlights
Business Highlights 12
Slide 14: Project Neev transition has impacted both topline and bottom line for Q2FY25
Project Neev transition has impacted both topline and bottom line for Q2FY25 1 2 3 4 Revenue (INR Cr) EBITDA % 10.0% Bridge highlighting inventory correction impact 5.7% INRGrowth 71 Cr 8.1% (3.2)% YoY 8.0% INR 63 Cr 6.0% INR 525 Cr (0.8)% (10.7)% 4.1%2 INR 496 Cr 4.0% Inventory 2.0% Correction Impa
Slide 15: Project Neev has progressed, with one-time inventory correction done
Project Neev has progressed, with one-time inventory correction done and 1 2 3 4 super-stockist layer removed in top 50 cities 1 2 3 4 5 6 TECH-ENABLED SALES SUPPLY CHAIN RTM TRANSITION RIGHT-SIZING MOVING TO NORM- MOVING TO RoI THROUGH FUTURE CAPABILITY WITH FOCUS ON CHANNEL BASED ORDERING BASED PA
Slide 16: Mamaearth is growing slower than expectations; structural changes underway
Mamaearth is growing slower than our expectations and we are making identified 1 2 3 4 structural changes to bring it back to its growth trajectory in a few quarters Factors impacting growth for Mamaearth ‘Wave’ of consumer Distribution and Supply Our Investment allocation Need to refresh brand pref
Slide 17: Retail offtake continues to be ahead of competition
…however, retail offtake continues to be ahead of competition 1 2 3 4 Value market share1 gain by +125 bps YoY in face wash and shampoo Growing presence in Modern Trade FACEWASH SHAMPOO 10,000+ Mamaearth’s Presence in MT Stores +125 bps +138 bps +125 bps +17 bps Value Market Share1 Share Among Handl
Slide 18: Younger brands continue to grow at 30%+ YoY while improving margin profile
Younger brands, continue to grow at 30%+1 YoY while improving their margin 1 2 3 4 profile Continues to become more efficient vis-à-vis last year. We expect to deliver double-digit EBITDA in FY26 Scaling The Derma Co. in offline channels with presence in 1,600+ stores across key Modern Trade chains
Slide 19: House of Brands strategy: focus categories grew 28%+ and gained market share
With our House of Brands strategy, the focus categories, contributing ~50% 1 2 3 4 business, grew at 28%+2 and gained market share Face Cleanser Sunscreen Face Serum 2023 Industry Size INR 8,000 -10,000 cr INR 1,800 – 2,000 Cr INR 2,000 – 2,200cr CAGR (2023-2028)1 6% - 8% 15%+ 20%+ Hero Products Mam
Slide 20: Leveraging innovation to win in Moisturization through House of Brands
Honasa is leveraging Innovation to win in Moisturization as a category through 1 2 3 4 its House of Brands Natural, toxin-free and Combining science- made-safe certified backed active ingredients Balance of Actives + Hydration through Naturals lightweight textures 19
Slide 21: Beauty inspired by Goodness – Contribution to Environment and Community
Beauty inspired by Goodness – Contribution to Environment and Community 1 2 3 4 7,00,000+ 24,000+ 800+ Trees planted till date Students empowered Rural households tackling deforestation & by providing them with impacted with bringing income high-quality practical provision of clean, safe opportuniti
Slide 22: Financials Summary
Financials Summary 21
Slide 23: P&L Summary
P&L Summary All figures in INR Cr Quarter Ended Half year Ended Particulars Q2 FY25 Q2 FY24 YoY Growth H1FY25 H1FY24 YoY Growth Revenue from operations 462 496 (6.9%) 1,016 961 5.8% Cost of Goods Sold 144 151 301 286 GROSS PROFIT 318 345 (7.8%) 715 675 5.9% GROSS PROFIT Margin % 68.8% 69.5% 70.3% 70
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