Mamaearth parent says contribution of top 10 products to operating revenue decreasing

economictimes.indiatimes.com:

Honasa Consumer, the parent of personal care consumer brand Mamaearth, has seen a reduction in the contribution of its top 10 products to its operating revenue, which the company said could “adversely affect” its business, cash flows and financial condition.

«While our dependence on sales of our top 10 products has been declining with increasing contributions from our other products, any decrease in the sales of our top 10 products, whether due to increase in sale of products or market share of competitors with similar products or any other reason, will adversely affect our business, results of operations, financial condition and cash flows,” the company said in its red herring prospectus (RHP) dated October 23.

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For the year-ended March 31, Honasa’s top 10 products accounted for 27.38% to its Rs 1,492.75 crore operating revenue, down from 30.17% of Rs 943.46 crore in the previous year, according to the RHP.

Honasa, which also owns the brands The Derma Co and BBlunt, plans to launch its initial public offering (IPO) on October 31.

For the June quarter, the company’s revenue from operations stood at Rs 464.49 crore, up 49% from a year ago. Net profit stood at Rs 9.24 crore, according to the RHP. In the year-ago quarter, the company had reported a loss of Rs 2.51 crore.

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The company has attributed the