The Derma Co: Honasa Consumer’s The Derma Co hits Rs 500 crore revenue run rate

Honasa Consumer, the parent of beauty and personal care brand Mamaearth, said its active ingredients-backed skincare brand, The Derma Co, has achieved an annual revenue run rate (ARR) of Rs 500 crore.ARR is the projection of a company’s annual revenue based on its current performance. The company said the achievement was driven by the creation of brands offering specialised products tailored for Indian skin and weather conditions.

The company said it sold more than 10 million units under the brand last fiscal year.

In active ingredients skincare, where products contain ingredients that target specific concerns, The Derma Co competes with brands including Peak XV Partners-backed Minimalist and A91 Partners-funded Plum, in addition to global brands such as The Ordinary and Cetaphil.

Last year in September, ET had reported that The Derma Co which was launched in 2020 had crossed the Rs 350 crore mark during the June-quarter in FY24, making it the second brand in Honasa Consumer’s portfolio to do so after Mamaearth.

Honasa Consumer operates seven brands – Mamaearth, The Derma Co, Bblunt, Ayuga, Aqualogica, Dr Sheth’s and the recently launched colour cosmetics brand Staze.

In August last year, the company’s hydration-based skincare brand, Aqualogica, crossed an ARR of Rs 150 crore.“Our success is an output of in-depth consumer study of the evolving consumer demands and being able to innovate swiftly to deliver differentiated propositions to our consumers,” said Varun Alagh, cofounder, chairman and chief executive of Honasa Consumer.

The company reported 265% growth in its consolidated net profit to Rs 26 crore for the quarter ended December from Rs 7.1 crore a year earlier. Revenue from operations in the third quarter increased 28% year-on-year to Rs 488 crore.

The company has yet to announce its fourth-quarter and fiscal year 2024 results.

Shares of the company were 3.7% higher at Rs 400 on the BSE in early afternoon trading on Monday, compared with a 0.5% gain in the benchmark Sensex index.