FSN E-Commerce Ventures (Nykaa)'s consolidated net profit rose 33% to Rs 4.55 crore in Q1 FY23 as against net profit of Rs 3.42 crore in Q1 FY22.
Revenue from operations jumped 41% year on year (YoY) to Rs 1,148.42 crore in Q1 FY23. Profit before tax increased to Rs 8.34 crore in Q1 FY23 from Rs 3.15 crore posted in Q1 FY22.Gross profit surged 54% YoY to Rs 509.9 crore in Q1 FY23 at a margin of 44.4%, up 380 bps YoY. EBITDA grew 71% to Rs 46.1 crore in Q1 FY23 at a margin of 4% (vs 3.3% in Q1 FY22), led by improvement in gross margin and efficiency in fulfilment expense.
During the quarter, the company's cost of goods sold jumped 32% YoY to Rs 638.5 crore. Operating expenses increased 52% YoY to Rs 463.8 crore. Fulfilment expense stood at Rs 105 crore (up 12%), marketing & advertisement expense was reported at Rs 137.6 crore (up 52%) and employee benefits expense was at Rs 114.7 crore (up 58%).
Consolidated GMV (gross merchandise value) grew 47% YoY to Rs 2,155.8 crore in Q1 FY23.
Beauty and Personal Care (BPC) GMV rose 39% YoY to Rs 1,488.8 crore in Q1 FY23. Fashion GMV was jumped 59% YoY to Rs 582 crore in Q1 FY23. Fashion GMV contributed 27% to consolidated GMV in Q1 FY23.
Annual Unique Transacting Customers in BPC vertical grew 33% YoY to 8.6 million, and in Fashion vertical surged 99% YoY to 2 million in Q1 FY23.
Order volume in BPC vertical was up by 40% YoY to 8.1 million, and in Fashion vertical grew 58% YoY to 1.1 million in the quarter ended 30 June 2022.
Falguni Nayar, executive chairperson, MD, and CEO, said: Our business continues to grow across the verticals, despite an adverse and challenging macroeconomic environment, demonstrating the strength of our business fundamentals and unique customer-first experiences. The beauty vertical, online and offline, is witnessing growth momentum while building efficiencies across the value chain. As a result of the significant discipline that we ensured in our retail store business during the COVID affected periods, we are now witnessing the positive effect of scale on our unit economics, especially with the return of offline shopping behaviour. The consumer demand for beauty, personal care and wellness is also showing early signs of recovery and we are gearing up for a promising festive season this year.
We continue to invest in building a unique customer proposition in fashion, with developments in platform experience and assortment depth. We also strengthened our purpose led owned brands portfolio, through the launch of Twig & Twine, Gloot, Azai and the acquisition of Kica. The sequential growth of Fashion over Q3 and Q4 of last year comes as a result of these building blocks along with the industry witnessing revival as factors such as mobility and travel improve.
We remain focused on investing in growth engines of the future, particularly Superstore by Nykaa, Nykaa Man and international operations. In each of these, our efforts are towards building the business model in a sustainable manner. We are witnessing promising revenue growth in these ventures, giving us confidence in our ambitions.
Meanwhile, the company's board has approved the acquisition of 100% of the fully diluted share capital of lluminar Media (known as ' Little Black Book'). The acquisition will enable the company to strength its content delivery, drive discovery for brands and make shopping experience more engaging for the customers.
Nykaa is a leading lifestyle-focused consumer technologies platforms. Since its launch, it expanded its product categories by introducing online platforms Nykaa Fashion, Nykaa Man, and Superstore. Delivering a comprehensive Omnichannel e- commerce experience, Nykaa offers over 4,000 brands and over 3.1 million product SKUs through its website and mobile applications.
Shares of FSN E-Commerce Ventures were up 0.88% at Rs 1425 on the BSE.
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