Nykaa FY22 revenue up 55% YoY to Rs 37,739 mn, but PAT falls 33%

Digitally native lifestyle retailer FSN E-Commerce Ventures Ltd (Nykaa), has announced its financial results for the quarter and financial year ended March 31, 2022. Nykaa has 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.

Consolidated financial highlights for FY2022 and Q4 FY2022:

GMV grew 71% YoY to â‚¹ 69,332 million in FY2022 and grew 45% YoY to â‚¹ 17,979 million in Q4 FY2022

Revenue from Operations grew 55% YoY to â‚¹ 37,739 million in FY2022 and grew 31% in Q4 FY2022 to â‚¹ 9,733 million

Gross Profit grew 73% YoY to â‚¹ 16,439 million in FY2022 and grew 40% YoY to â‚¹ 4,253 million in Q4 FY2022

EBITDA was â‚¹ 1,633 million in FY2022, grew by 4% YoY. EBITDA margin as % of Revenue from Operations declined to 4.3% in FY2022 vs 6.4% in FY2021, owing to investment in Fashion and Other Businesses for future growth

Profit after Tax was â‚¹ 413 million in FY2022, a decline of 33%

Beauty and Personal Care (BPC):

Strong performance ahead of market

GMV grew 49% YoY to â‚¹ 49,987 million in FY2022 and grew 29% YoY to â‚¹ 12,485 million in Q4 FY2022

Annual Unique Transacting customers grew 49% YoY to 8.4 million as of March 31, 2022

BPC witnessed strong customer acquisition with new customers growing at 49% YoY to 4.4 million and improved customer retention with existing customers contributing to 73% of the GMV in FY2022

BPC EBITDA margins have sustained in FY2022 despite elevated marketing cost during the year

Fashion:

Scaling in a highly competitive environment

GMV grew 168% YoY to â‚¹ 17,516 million in FY2022 and grew 84% YoY to â‚¹ 4,827 million in Q4 FY2022

Fashion GMV contributed 25.3% to Consolidated GMV in FY2022

Annual Unique Transacting customers grew 182% YoY to 1.8 million as of March 31, 2022 with strong customer acquisition of 1.6 million in FY2022

Investment into the future:

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 â‚¹ 1,829 million contributing to 2.6% 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

Commenting on the 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 further said, “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.”