FSN E-Commerce Ventures, which operates online beauty and fashion retailer Nykaa posted its fiscal first quarter profit at Rs 5.43 crore, up 8.4 per cent as against Rs 5.01 crore during the first quarter of FY23. It posted revenue from operations at Rs 1421.82 crore, up 23.8 per cent in comparison to Rs 1148.42 crore during the same period last year. The company EBITDA stood at Rs 73.50 crore, up 60 per cent on-year. While the total income during the quarter was at Rs 1428.55 crore, the total expenses during the quarter ended June 2023 was at Rs 1418.83 crore. The company GMV grew 24 per cent on-year to Rs 2667.80 crore during Q1FY24
“Our beauty vertical continues to shape into an ecosystem of its own – with steady and balanced growth across our online platforms, physical footprint as well as our consumer brands. Fashion’s consumer brands also experienced steady growth with our own labels now spanning across categories – western wear, Indian Wear, lingerie, menswear, accessories and much more. Nykaa Fashion’s growth in the quarter was much ahead than the industry growth but below its long-term trajectory,” said Falguni Nayar, Executive Chairperson, MD, and CEO, Nykaa.
Nykaa’s Q1 performance across business verticals
In the beauty and personal care segment, Nykaa GMV grew 24 per cent on-year to Rs 1850.80 crore in Q1FY24, with strong performance across its verticals. The e-commerce platform, physical retail, and the consumer brands, all witnessed healthy growth. While physical retail space increased by 43 per cent YoY with 152 stores, its own brands GMV also grew close to 40 per cent year-on-year. The company said that the BPC annual transacting customers for Q1 expanded to 10.3 million customers, which was 6.5 million just 2 years ago. “The continually growing share of existing customers – while expanding the base – signals very healthy and sustainable customer acquisitions and is a reflection of positive shopping and post-order experiences. The physical retail business witnessed close to a 40 per cent growth in annual unique transacting customers over the previous year,” it said. Nykaa had acquired Dot & Key in 2021 which has witnessed a GMV growth of over 5x since it became part of the company. The brand is profitable and has crossed an annualized GMV run rate of Rs 300 crore.
In the fashion segment, Nykaa posted GMV growth of 12 per cent for Q1FY24, slower than the long-term trajectory. “The growth exceeded the short-term industry trajectory, given the weak fashion industry outlook for this quarter in particular. However, post the quarter, the business has witnessed positive momentum, with July’23 observing a healthy year on year growth supported by the success of the flagship ‘Hot Pink Sale’,” it said. The annual unique transacting customer has grown over 160 per cent to 2.6 million in Q1FY24, compared to 1 million customers two years ago. The current average order value for the platform, in excess of Rs 4,400 for Q1FY24, is up from Rs 4,000 two years ago, even with rapid customer expansion. Its 13 fashion owned brands witnessed steady GMV growth of over 30 per cent, now contributing to 14 per cent of the fashion GMV.