Honasa Consumer jumps 3% after The Derma Co. brand achieves annual revenue rate of ₹500 crore

Honasa Consumer shares jumped over 3% higher on Monday after the company announced its skincare brand The Derma Co. achieved an annual revenue rate of ₹500 crore.

The Derma Co. products are aimed to resolve concerns like active acne, acne marks, pigmentation, dull skin, ageing, hair loss and dandruff, among others. The brand caters to consumers across retail and digital touchpoints.

Honasa Consumer had said during its third quarter results announcement that The Derma Co. brand achieved an earnings before interest, tax, depreciation and amortisation (EBITDA) positive status year-to-date, buoyed by hero products such as serums, sunscreens, and face wash.

Varun Alagh, co-founder, chairman and chief executive officer at Honasa Consumer had said during the third quarter earnings call that the company continues to scale its younger brands strongly.

“And in fact, the great news is that our second brand, The Derma Company, has actually become EBITDA profitable now at a nine-month level. The brand continues to be EBITDA positive. And that just gives us a lot more confidence as we grow, that our playbooks on brand building and as these brands scale, they will start contributing to the profit pool of the company as well. And the investment allocation strategy that we have is clearly paying off,” Alagh had said.

“This year the objective would be to have a targeted store strategy getting into hypers, getting into the right kind of pharma stores for Dermaco and expanding that presence,” Alagh had stated.

During the third quarter of FY24, Honasa Consumer had reported a 28% rise in its consolidated revenue at ₹488 crore. Consolidated EBITDA grew 192% year-on-year (y-o-y) at ₹34.5 crore while net profit grew 264% to ₹26 crore.

Shares of Honasa have lost over 6% since the beginning of the year. The stock has risen nearly 19% in the last one year.