Hollywood actress Jessica Alba’s organic beauty and baby care brand, Honest Company, had a strong start to 2021, driven by the rollout of sanitisation and disinfecting products during the height of the pandemic.
The company’s household and wellness product category saw revenue soar 53 per cent year on year for the three months to the end of March, which was attributed to sales from its sanitisation and disinfecting products, according to its first earnings report since going public in early May. The group began distributing disinfecting products during the second half of 2020.
“While we were still able to see significant growth in household and wellness, we are starting to see households and retailers destock sanitisation and disinfecting products as more consumers become vaccinated and return to their pre-Covid routine,” chief financial officer Kelly Kennedy said during an earnings call on Wednesday.
Overall, revenue stood at a record $81m for the first quarter, a 12 per cent increase over the same period last year. Sales of diapers and wipes were down 2 per cent, while its skin and personal care division saw revenue increase 42 per cent.
Digital channel revenue grew 2 per cent to $42.5m. Retail channel revenue stood at $38.6m, up from $30.9m in the year-ago quarter.
“Overall, we have seen increased consumer willingness to get back into stores, as consumer behaviour in response to the Covid-19 pandemic changes,” said Nick Vlahos, chief executive.
Alba launched Honest Company in 2011 and quickly saw sales increase. But in 2015 and 2016, the company was plagued with lawsuits that alleged some of its products contained synthetic and toxic ingredients, and paid out almost $10m to consumers in court settlements.
The company raised $413m and was valued at more than $1.4bn in its IPO.
“As we look to the future, we will continue to use consumer insights to drive our focus on current and future trends in self-care, clean beauty, and skincare as well as our key product categories of diapers and wipes, household and wellness,” Alba said in a statement.