Nykaa Q4 PAT slides 49% YoY to Rs 8.56 cr

FSN E-Commerce Ventures (Nykaa)'s consolidated net profit fell 49.29% to Rs 8.56 crore in Q4 March 2022 as against net profit of Rs 16.88 crore in Q4 March 2021.

Revenue from operations declined 11.38% sequentially ("QoQ") and 31.44% Year on Year ("YoY") to Rs 973.32 crore in Q4 FY22. Gross profit grew 40% YoY to Rs 425.30 crore in Q4 FY22 at a margin of 43.7%, up 254 bps YoY. EBITDA fell 14% to Rs 38.50 crore in Q4 FY22 at a margin of 4% (vs 6.3% in Q3 FY22 and 6% in Q4 FY21).

During the quarter, the company's cost of goods sold jumped 26% YoY to Rs 548.10 crore. Operating expenses increased 49% YoY to Rs 386.70 crore. Fulfilment expense stood at Rs 94.9 crore (up 48%), marketing & advertisement expense was reported at Rs 116.50 crore (up 66%) and employee benefits expense was at Rs 90.80 crore (up 32%).

 

Consolidated GMV (gross merchandise value) fell 12% QoQ and grew 45% YoY to Rs 1797.20 crore in Q4 FY22.

Beauty and Personal Care (BPC) GMV fell 17% QoQ and rose 29% YoY to Rs 1248.50 crore in Q4 FY22. Fashion GMV was flat QoQ and jumped 84% YoY to Rs 482.70 crore in Q4 FY22. Fashion GMV contribution 27.29% to consolidated GMV in Q4 FY22.

Annual Unique Transacting Customers in BPC vertical grew 7% QoQ and 49% YoY to 8.4 million, and in Fashion vertical grew 15% QoQ and surged 182% YoY to 1.8 million in Q4 FY22.

Order volume in BPC vertical fell 4% QoQ and rose 34% YoY to 7.3 million, and in Fashion vertical fell 4% QoQ and jumped 55% YoY to 1.3 million in Q4 FY22.

Nykaa said it experienced overall strong performance in FY2022 amidst various macro-economic challenges such as rising inflation, reduction in discretionary spends by consumers, and uncertainty around Covid-19.

For the year, profit after tax declined 33% to Rs 41.30 crore while revenue from operations grew 55% YoY to Rs 3773.90 crore in FY2022. Gross Profit grew 73% YoY to Rs 1643.90 crore in FY2022. EBITDA was at Rs 163.3 crore in FY2022, grew by 4% YoY. EBITDA margin declined to 4.3% in FY2022 vs 6.4% in FY2021, owing to investment in Fashion and Other Businesses for future growth. GMV grew 49% YoY to Rs 4998.70 crore in FY2022.

FY22 revenue growth was led by strong growth in transacting customers despite adverse environment and inflationary headwinds.

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.

We have expanded our addressable market through new growth engines - speciality 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. We deeply value our shareholders' faith in us and hold their capital in 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."

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 1.56% at Rs 1372.95 on the BSE.

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