The Honest brand grew significantly in popularity in 2020 due to increased demand for baby products and sanitizer wipes.
Honest, founded by actress Jessica Alba, has filed for its first public stock sale. The brand hit the market in 2011 and offers customers a variety of home products under its name. The emphasis is placed on production and consumption's ethical processes, emphasized by the company's name Honest.
The company applied to the initial public sale of shares in the U.S. on April 9. Its placement represents the company's entry into a new stage of development. Sufficiently successful even before the pandemic, the Honest brand became one of the manufacturers who boosted growth during the crisis.
A significant share of the brand's products includes baby care and various lotions and skin care products, the need for which increased during the pandemic. But the most demanded category of products, which provided the growth in popularity of the brand, were various disinfectants. Diapers and disinfectant wipes were also the most popular in the brand's range, with these product categories alone accounting for about two-thirds of sales.
Honest's 2020 profits, according to official reports, were about $300 million, which translates to an increase of about 28%. Based on the results of the past fiscal year 2020, the company decided to go public. The shares will be traded under the symbol "HNST" on the Nasdaq stock exchange.
The funds raised will be used to strengthen its online businesses, and the company also intends to expand sales through third-party vendors. Honest, which is popular in the U.S., plans to expand into European countries soon and enter the promising market of the Asian region.