A clean lifestyle product company founded by actress Jessica Alba has announced plans to go public with a planned IPO.
The IPO: The Honest Company (NASDAQ: HNST) filed to go public and list on the Nasdaq with the ticker HNST.
About The Honest Company: The company was founded by Alba in 2012. The brand was created after the actress struggled to find clean products and saw allergic reactions to several products due to a large number of ingredients in them.
“You shouldn’t have to choose between what works and what’s good for you,” Alba said.
The Honest Company calls itself a “conscious living company for today and tomorrow.”
Over the years, the company has expanded from being strictly a diapers and wipes company to now covering every age and every life stage for its customers. Diapers are seen as a strategic consumer acquisition by the company and as an entry point to getting customers to buy other products from the company’s portfolio.
Unilever plc (NYSE: UL) was rumored to be considered acquiring the company back in 2016.
After the IPO, Alba is expected to own 6.7% of The Honest Company.
Related Link: 10 IPOs To Watch Out For In 2021
Financials: The Honest Company had revenue of $235.6 million in fiscal 2020, a 27.6% year-over-year increase.
Diapers and wipes made up 63% of the company’s revenue and saw sales increase 16.4% year-over-year. Skin and personal care segment sales represented 26% of company sales in 2020 and were up 55% year-over-year. The household and wellness segment made up 11% of the company’s revenue and was up 116.5% year-over-year in 2020.
The Honest Company utilizes an omnichannel approach that saw revenue split 55% from digital sales and 45% from retail sales in 2020.
Costco Wholesale Corporation (NASDAQ: COST), Target Corporation (NYSE: TGT) and Amazon.com Inc. (NASDAQ: AMZN) were mentioned in the prospectus as key retail partners.
Growth Ahead: The Honest Company plans on continuing its expansion as the clean and natural product segments are strong and a growing addressable market size.
The company wants to expand its digital channel and continue the execution of its omnichannel approach.
(Photo: Jeff a.k.a wumpiewoo via Flickr Creative Commons)
(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
