Actress and founder Jessica Alba said the Honest Company’s public debut on Wednesday will usher in a new phase of growth for the consumer goods company.
“I think this is really where we are really looking at this next phase of growth and this is the beginning for us in many ways,” said Alba at CNBC “Squawk Box.”
She started the company a decade ago, starting with baby products. Since then, the company’s product portfolio has been expanded to include make-up, sunscreen and cleaning products – all with the promise of transparency with regard to its formulas. This promise has made it a target of criticism in the past not to meet this standard.
Last year, Honest’s net sales increased 27.6% to $ 300.5 million, and the company reduced its net loss to $ 15 million.
Around 55% of sales come from digital orders, CEO Nick Vlahos told Andrew Ross Sorkin. Honest’s use of social media, especially on Alba’s own accounts, has helped drive this digital growth.
“Social media has been a strategic marketing channel for us,” said Alba, who is known for her roles on the television series “Dark Angel” and in films such as “Fantastic Four”.
“This is where we build a community and from day one, community engagement is at the core of one of our values for what we build.”
The IPO was priced at $ 16 per shareThis gave the company $ 1.44 billion in value and grossed $ 412.8 million. According to regulatory filings, Honest plans to use the proceeds for general corporate purposes, including acquisitions. It is traded on the Nasdaq with the ticker “HNST”.