Beauty e-retailer Nykaa sees healthy revenue growth trend for FY23

Growth from tier 1 consumer have demonstrated sustained consumption

In a business update to the stock exchanges, the beauty e-retailer Nykaa on Wednesday said that it has continued to display healthy revenue growth trends.

In Q4FY23, against the backdrop of subdued industry growth, Tier 1 consumers have demonstrated sustained consumption. This has led to stronger revenue growth on the Nykaa platforms, said the company in the filings.

This revenue update seeks to provide an overall summary of the revenue growth trends achieved by FSN E-Commerce Ventures Limited together with its subsidiaries(“Nykaa”) during the quarter ended on March, 31 2023 (Q4FY23). A detailed performance update will be issued once the audited financials for Q4 FY23 are approved by the Board, said the company.

 

Nykaa updated that its beauty & personal care (BPC) business has seen higher year-on-year growth rates in Q4FY23 as compared to the year-on-year growth rates seen in Q3FY23.

The operating parameters for the BPC business viz. average order values and conversion rates have been robust which has aided growth in revenue. “For FY23, we expect our percentage revenue growth rates to be in line with the ones seen in 9 month FY23, early-thirties,” said the company in a statement.

The company however, said that the consumer pullback in discretionary spends has had some impact on its fashion business, leading to subdued growth in NSV this quarter.

“For Q4FY23, we expect our percentage revenue growth rates in the Fashion business to come through in the late teens. This comes on the back of our focussing on business efficiency and unit economics. Our average order values and conversion rates have improved steadily,” said the company.

"For FY23 at the consolidated level, we expect to sustain our percentage growth rate in line with 9MFY23", the company further added.