Honest Co, a consumer goods company founded by actress Jessica Alba, filed for a U.S. initial public offering on Friday following a strong year that was driven by a pandemic-driven surge in demand for baby products, lotions and sanitizers.
This is coming in the heels of the company’s move to list its shares comes as it plans to strengthen its online business, while pushing up its presence at third-party sellers and in international markets, including the lucrative Asian region.
Saying there were plans to use the proceeds from the offering to fund marketing and direct-to-consumer advertising, as well as launch new products and buy complementary businesses.
As consumers faced shortages of products such as wipes at the height of the pandemic and mandatory closures, they turned to online brands that could meet the demand and Honest Co was one of those brands.
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The company which was started by Jessica alba Alba in 2011 has had relationships with some big market players including Target Corp and Amazon. Marketed their baby products as a safer alternative to those that contain synthetic chemicals.
Statement from the company said its sales grew 27.6% to $300.5 million in 2020, from $235.6 million in 2019. It lost $14.5 million in 2020, or 85 cents a share, compared with a loss of $1.83 a share in the previous year.
Net loss for the period also narrowed to $14.5 million from $31.1 million a year earlier, it said in a filing with the U.S. Securities and Exchange Commission (SEC).