Honasa Consumer acquires CosmoGenesis Labs for ₹4 crore to bolster skincare portfolio

Honasa Consumer Limited, the parent company of MamaEarth, on Monday, May 27, announced acquisition of the assets of CosmoGenesis Labs, a firm engaged in cosmetic formulation and development, particularly in premium skincare solutions.

In a stock exchange filing, Honasa Consumer Limited said that the acquisition marks a significant leap for the company in research-driven innovation.

Shares of Honasa Consumer Limited gained as much as 1.46% to hit an intraday high of ₹436.9 apiece on the NSE. However, the stock declined during the afternoon session. The stock closed 0.98% lower at ₹426.4 apiece on the NSE.

Commenting on the development, Ghazal Alagh, CIO and co-founder of Honasa Consumer Limited, said, “This strategic alliance with CosmoGenesis will exponentially increase our ability to research new trends with greater efficiencies and help craft best-in-class products. This acquisition empowers us to tap into new sub-categories, leverage cutting-edge research and development, and ultimately, deliver exceptional value to our consumers.”

Rohini Manoj, the founder of CosmoGenesis, said, “We have been working with Honasa Consumer for some time now and have worked on some incredible innovations.”

Last week, on May 23, Honasa Consumer Ltd reported its financial results for the quarter and year ended March 31, 2024. In Q4FY24, the company delivered its highest-ever quarterly Profit After Tax (PAT) of ₹30 crore and generated ₹81 crore in cash. The company reported an EBITDA of ₹33 crore for Q4FY24, reflecting an EBITDA margin of 7%. This marked a 780-basis points improvement year-over-year. Revenue for the quarter grew by 21.5% year-on-year (YoY) to ₹471 crore.

For the full fiscal of 2024, Honasa's revenue from operations reached ₹1,920 crore, a 28.6% YoY growth. For FY24, the company reported a net profit of ₹111 crore. The company achieved an EBITDA of ₹137 crore in FY24, with an EBITDA margin of 7.1%, representing a 562-basis points improvement YoY.

CosmoGenesis was founded in 2011, and the company has been instrumental in supporting over 5,000 cosmetic and personal care formulations for businesses in India.

Apart from Mamaearth, Honasa Consumer Limited is also the parent company of The Derma Co, Aqualogica and Dr Sheth’s.