Honasa Consumer Limited · NSE:HONASA
Honasa Consumer — Q3 FY25 Earnings Presentation
22 slides from Honasa Consumer's earnings presentation, Feb 12, 2025
Slide 1: Exchange filing cover letter: Investor Presentation
February 12, 2025 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
S T R I C T L Y P R I V A T E A N D CO N FI D E N T I A L 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 2 Financial Snapshot 3 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 4 Moisturizers are becoming a more relevant format c
Slide 6: Moisturizers expected to grow at a fast pace as they replace legacy cream format
Moisturizers expected to grow at a fast pace as they replace legacy cream format 1 2 3 1 2 3 Indian consumers are looking for lighter Role of cream in problem solving is Moisturizers allow layering texture decreasing With increased awareness, consumer are Historically, Indian market had been Creams
Slide 7: Financial Snapshot
Financial Snapshot OO So8% 6 280 OSS HONASA
Slide 8: Back on growth trajectory with a profitable Q3FY25
With gradual General Trade scale up, the company is back on growth trajectory with 1 2 3 a profitable Q3FY25… INR 518 Cr 70.0% 5.0% Revenue from Operations Gross Profit % EBITDA % 6.0% YoY Growth 132 bps Improvement YoY EBITDA: INR 26 Cr INR 26 Cr 1.5% INR 43 Cr Profit After Tax UVG1 Free Cash UVG <
Slide 9: 10.2% adjusted growth in 9MFY25
… While delivering 10.2% growth (adjusted for one-time inventory correction 1 2 3 in Q2FY25) in 9MFY25 Reported Revenue from Operations Adjusted Revenue from Operations Reported Gross Profit % Adjusted for Q2FY25 Inventory correction1 INR 1,533Cr INR 1,596 Cr 70.2% YoY Growth: 5.8% Adjusted YoY Grow
Slide 10: Sequential improvement in EBITDA
1 2 3 Honasa saw sequential improvement in EBITDA … with margin impacted largely due to reduction in Company back to profitability… leverage Reported EBITDA% Reported EBITDA% 8.3% 8.3% 5.0% 5.0% (3.3%) Reduced primary sales causing reduction in Q1FY25 Q2FY25 Q3FY25 operating leverage (offline-led) Q
Slide 11: Business Highlights
Business Highlights 2 0%sa, 10 Boos HONASA
Slide 12: Mamaearth gaining market share and household penetration
Mamaearth continues to gain consumer love leading to growing market share 1 2 3 and increasing household penetration In Face Washes, Mamaearth is perceived as #1 brand in Online and #3 in Offline in terms of Brand Power/Equity – Kantar Brand Health Track Value Market Share Gains Improving Household
Slide 13: Mamaearth pilots to re-align playbooks for future growth
Mamaearth is mounting pilots to re-align playbooks to define its future growth 1 2 3 trajectory Building leadership in focus Playing in all prominent Awareness-led brand Investment Allocation – categories category partitions in focus building Understanding Media Mix categories Modelling 1 2 3 4 glow
Slide 14: Building Multi-Category Brands
Younger brands have continued their growth momentum with 30%+ YTD YoY 1 2 3 growth Core Growth Sun Body Drivers Face Sun Face Moisturizer Shampoo Hair Conditioner Sun Moisturizer Face Serum Care Cleanser Care Mist Spray Care Serum Building Multi-Category Brands 13
Slide 15: Focus categories grew ~18% in 9MFY25
Focus categories grew ~18%1 in 9MFY25 for Honasa, as the company aims 1 2 3 significant share-gains in these over next 3-5 years Face Cleanser Shampoo Serum Moisturizer Sun Care Baby Care 14 14 1. Adjusted for inventory correction in Q2FY25
Slide 16: Quick-commerce growing 200%+ YoY in 9MFY25
Newer channels like Quick-commerce continue to perform well growing 200%+ 1 2 3 YoY in 9MFY25 Select Bestsellers on Quick-commerce Activations on Quick Commerce Platforms Introduced Mamaearth Aqualogica refresh+ The Derma Co. 2% Kojic Rice Face Wash Perfume Body Mist Acid Face Serum Sampling on QCom
Slide 17: Project Neev progress on long-term distribution layer
Project Neev has progressed, with focus on creating the long-term distribution 1 2 3 layer 1 Appointment of Tier-11 distributors 2 Direct Outlet Coverage2 90,237 ~90,000 45,324 ~45,000 100% Q1FY25 9MFY25 100% completion of appointment of Tier- YTD cumulative direct outlets billed 11 distributors i
Slide 18: Key Innovations for the Quarter
1 2 3 Innovation continues to build brand strength across Focus Categories Key Innovations for the Quarter Rice Water Dewy Beetroot Hydraful 5% Nia-Ceramide Deep refresh+ Perfume Ceramide and Vitamin C Advanced Smoothening Sunscreen Moisturizer Moisturizing Cream Body Mist Moisturizing Cream Shampoo
Slide 19: Beauty inspired by Goodness – Contribution to Environment and Community
Beauty inspired by Goodness – Contribution to Environment and Community 1 2 3 840,000+ 25,000+ 900+ 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 opportunities
Slide 20: Financials Summary
Financials Summary 19
Slide 21: P&L Summary
P&L Summary All figures in INR Cr Quarter Ended Nine Months Ended Particulars Q3FY25 Q3FY24 YoY Growth 9MFY25 9MFY24 YoY Growth Revenue from operations 518 488 6.0% 1,533 1,449 5.8% Cost of Goods Sold 156 153 456 439 GROSS PROFIT 362 335 8.0% 1,077 1,010 6.6% GROSS PROFIT Margin % 70.0% 68.6% 70.2%
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