Honasa Consumer Limited, the parent company of Mamaearth, experienced a significant decline in its financial performance for the September quarter. The company reported a loss of Rs 18.5 crore, which is a 163 percent drop compared to the profit of Rs 40 crore in the previous quarter and a profit of Rs 29.4 crore in the same period last year.
The decline in performance is attributed to the ongoing transition to a direct-to-consumer distribution model under Project 'Neev', which has resulted in necessary inventory corrections. This transition has also impacted the company's EBITDA margin, which fell to negative 6.6 percent from 8.1 percent in Q1. Additionally, the company's revenue for the quarter decreased to Rs 461.8 crore, down from Rs 554 crore in June and Rs 496 crore year-over-year.
While total expenses increased by 9 percent year-on-year, they decreased sequentially to Rs 506 crore.