Nykaa's Q4FY22 PAT falls 58 pc YoY to Rs76 million; revenue from ops grows 31 pc to Rs9,733 million
Mumbai: Digitally native lifestyle retailer FSN E-Commerce Ventures Limited which runs Nykaa, Friday posted a consolidated PAT of Rs76 million in the final quarter of FY22, down 58 percent year-on-year (YoY) compared to Rs179 million in the same quarter of the FY21.
The company said its PAT for FY22 stood at Rs413 million, a decline of 33 percent year-on-year compared to Rs616 million in FY21.
Sequentially, Q4FY22 PAT dropped 74 percent compared to Rs290 million in the December quarter of FY22.
Revenue from operations grew 55 percent YoY to Rs37,739 million in FY2022 and grew 31 percent in Q4 FY22 to Rs9,733 million.
Gross Profit grew 73 percent YoY to Rs16,439 million in FY22 and grew 40 percent YoY to Rs 4,253 million in Q4 FY22.
EBITDA or earnings before interest, taxes, depreciation and amortization stood at Rs1,633 million in FY2022, up 4 percent YoY.
EBITDA is a measure of a company’s overall financial performance.
EBITDA margin as a percentage of Revenue from Operations declined to 4.3 percent in FY2022 vs 6.4 percent in FY2021, owing to investment in Fashion and Other Businesses for future growth.
The EBITDA margin is a measure of a company's operating profit as a percentage of its revenue. It helps in the comparison of the performance of the company with other entities in the same industry.
GMV or gross merchandise value grew 71 percent YoY to Rs69,332 million in FY2022 and grew 45 percent YoY to Rs 17,979 million in Q4 FY2022.
Gross merchandise volume is a term used in online retailing to indicate a total sales monetary-value for merchandise sold through a particular marketplace over a certain time frame. GMV includes any fees or other deductions which a seller might calculate separately, according to Wikipedia.
Nykaa's GMV for the Beauty and Personal Care (BPC) segment was 49 percent YoY to Rs49,987 million in FY2022 and grew 29 percent YoY to Rs12,485 million in Q4 FY2022.
Annual Unique Transacting customers grew 49 percent YoY to 8.4 million as of March 31, 2022, the company said.
BPC witnessed strong customer acquisition with new customers growing at 49 percent YoY to 4.4 million and improved customer retention with existing customers contributing to 73 percent of the GMV in FY2022
BPC EBITDA margins have sustained in FY2022 despite elevated marketing cost during the year.
The company’s fashion segment’s GMV grew 168 percent YoY to Rs 17,516 million in FY2022 and grew 84 percent YoY to Rs 4,827 million in Q4 FY2022
Fashion GMV contributed 25.3 percent to Consolidated GMV in FY2022
The fashion segment’s Annual Unique Transacting customers grew 182 percent YoY to 1.8 million as of March 31, 2022 with strong customer acquisition of 1.6 million in FY2022
Nykaa has invested in future growth engines for greater diversification in lifestyle categories as well as vertically integrating across the value chain.
Others include new businesses NykaaMan, eB2B platform SuperStore by Nykaa, International and new brand acquisitions
Others GMV was Rs 1,829 million contributing to 2.6 percent in the Consolidated GMV in FY2022
SuperStore by Nykaa has 18,000+ transacting retailers across 300+ cities with 130+ brands listed as of March 31, 2022.
Nykaa has launched “SuperStore by Nykaa”, an eB2B platform bringing Beauty and Personal Care access and expertise to underserved channels and markets using technology.
Catering to retailers such as beauty stores, pharmacies, salons and kirana stores across India, SuperStore aims to support and empower them to offer the best of the Beauty and Personal Care products to their customers.
Nykaa Beauty expanded its international brands portfolio by launching Sol de Janeiro, Morphe, Nuxe, Elemis, 111Skin, Nudestix, bringing the best of global beauty to India - across premium and luxe categories.
Nykaa Fashion launched The Global Store by bringing the best of international brands directly to Indian consumers such as NA-KD, Missguided and Oxxo.
With the return of customers to physical retail, Nykaa accelerated store expansion this year, with 32 new physical stores across the country including stores in Tier 2/3 cities.
Total operational physical store count stood at 105 as of March 31, 2022 in 49 cities with GMV growth of 72 percent YoY in FY2022.
To continue access and timely delivery for customers across the length and breadth of the country, the company expanded warehouse storage space by 2.4 lakh square feet, growth of 40 percent YoY, in FY2022. Our total warehouse capacity as of March 31, 2022 is 8.2 lakh square feet across 23 warehouses in 11 cities.
Nykaa strengthened its partnership with ELCA Cosmetics Private Limited with the launch of Aveda X Nykaa unisex salons in India, offering advanced, international, high performance and 100 percent vegan premium hair services to Indian consumers.
Nykaa acquired 51 percent stake in Dot & Key Wellness Private Limited (“Dot & Key”) in September 2021.
This was the first D2C (direct to consumer) beauty brand acquired by Nykaa, allowing the company to expand its skincare, personal care and nutraceuticals owned portfolio. Founded by Suyash Saraf and Anisha Saraf, Dot & Key is a new age brand that offers premium skincare products such as serums, face masks, toners and cleansers.
Nykaa picked a minority stake in Earth Rhythm, a science-focused beauty brand launched in 2015 by Harini Sivakumar.
By acquiring Kica, Nykaa has expanded its activewear portfolio which already houses its own consumer brand, Nykd All Day. Kica was founded by Aneesha Labroo in 2017, to bridge the gap between stylish, high-quality products at an affordable price.
Through this acquisition, Nykaa aims to connect with the growing active-wear community of athletes and everyday fitness seekers with greater variety and curation in this category.
Lastly, in a joint venture with Onesto Labs, Nykaa is venturing into nutricosmetics to unlock a new but high-potential category of edible beauty in India.
Nykaa and Onesto Labs have joined hands owing to the latter’s expertise in creating ingredient-conscious products, a vital prerequisite in nutricosmetics.
On FY2022 performance, Falguni Nayar, Executive Chairperson, MD, and CEO, said the year has witnessed a challenging macroeconomic environment, pronounced for discretionary categories like beauty, personal care and fashion.
“Despite market slowdown, our unique growth story continues, showing the resilience of our business model and long-term sustainability by balancing strong revenue growth, responsible unit economics and profitability. We acquired over 6 million new customers across beauty and fashion, and witnessed superior customer retention, with improved metrics across the funnel - from visits to conversions,” she said
The company expanded its addressable market through new growth engines - specialty retail stores, Nykaa Man, and SuperStore.
“These businesses, along with our consumer brands portfolio have witnessed increasing momentum through the year. Our consumer brands have recently seen expansion into wellness, activewear, and personal care through purpose-driven brand acquisitions,” she said.
“We deeply value our shareholders’ faith in us and hold their capital in the highest regard. Our investments are always made in getting the building blocks right - such as tech platform, customer experience, assortment - and growing our new and early-stage businesses in a sustainable manner with a long term focus,” she added.