The Honest Company, a personal care company dedicated to creating clean- and sustainably-designed products, has registered revenue of $93 million in the second quarter of fiscal 2024, an increase of 10 per cent, compared to the second quarter of 2023 driven by strong performance across our baby products and wipes portfolios.

Tracked channel consumption for the company grew 7 per cent compared to the comparative categories which were down 0.3 per cent in the same period.

Gross margin was 38.3 per cent compared to 27.1 per cent in the second quarter of 2023. Gross margin increased by 1,120 basis points compared to the second quarter of 2023 driven by improvements across the entire cost structure, including supply chain and product costs, as well as price increases and efficient trade spend.

Operating expenses increased $3 million, driven by deeper investments in marketing, reflecting a decrease of 30 basis points as a percentage of revenue compared to the second quarter of 2023. Selling, general & administrative expenses as a percentage of revenue decreased 120 basis points compared to the second quarter of 2023, the company said in a press release.

“This quarter, it is evident that our team’s commitment to our three transformation pillars of brand maximisation, margin enhancement, and operating discipline is working, resulting in outstanding performance that has exceeded our expectations. In addition to delivering our highest quarterly revenue of $93 million in the second quarter, we continued to increase profitability and achieved a gross margin of 38 per cent. This strong performance and momentum give us confidence to raise our financial outlook for the full year,” said chief executive officer, Carla Vernón. “At Honest, we are a company of builders. And, with a stronger financial foundation in place, this team is fully enrolled in helping to expand and strengthen the Honest brand and the portfolio of products that our community loves and trusts.”

Adjusted EBITDA was positive $8 million compared to negative $4 million in the second quarter of 2023. This represents the company’s third consecutive quarter of positive adjusted EBITDA.

The company ended the second quarter of 2024 with $37 million in cash and cash equivalents, an increase of $19 million as compared to the second quarter of 2023. The company had no debt on our balance sheet as of June 30, 2024.

Net cash provided by operating activities was $3 million, compared to net cash provided by operating activities of $4 million for the second quarter of 2023.