Nykaa Q2 Results: Net Profit Falls In First Earnings After IPO
Online beauty and fashion products retailer Nykaa’s consolidated net profit fell in the quarter ended September - in its first quarterly earnings release since going public at a $7 billion valuation and listing at 96.7% premium to the IPO price.
Net profit of FSN E-Commerce Ventures Ltd.—parent of the fashion and beauty marketplace fell 65% sequentially to Rs 1.2 crore in the quarter ended September, according to its filing with exchanges. The company had reported net profit of Rs 3.4 crore in the preceding quarter.
Revenue rose 8% to Rs 885 crore (47% increase YoY).
Earnings before interest, tax, depreciation and amortisation rose 26.4% to Rs 28.6 crore.
Ebitda margin narrowed to 3.2% from 3.3%.
This comes as the company increased marketing spend, to 13.7% versus 11.1% of revenue in Q1, to accelerate customer acquisition. Its monthly average unique visitors increased 11% to 2.1 crore in the beauty and personal care segment, while it rose 21% to 1.6 crore in the fashion segment.
‘We have maintained growth momentum in our beauty business, accelerated our fashion business and focused on building the brand Nykaa with strong marketing campaigns both digitally and mass media,” Falguni Nayar, managing director and chief executive officer of Nykaa said, adding that the company continues to invest in expansion of retail stores and fulfillment capacity ahead of the festive season.
Its operational physical store was 84 as of Sept. 30, 2021, with 8 new stories added in the quarter.
Besides acquiring skin care brand, Dot & Key, Nykaa also launched its eB2B app - Nykaa Superstore and expanded warehouse storage space by 0.37 lakh square feet during the quarter to a total 6.65 lakh square feet.
The company's shares ended trade on Friday at 2,330 a piece versus the IPO price of Rs 1,125. The bumper debut made Nayar India’s wealthiest self-made female billionaire, according to the Bloomberg Billionaires Index.
Other highlights (Q-o-Q)
Gross merchandising value surged 63% to Rs 1,623 crore
Average order value in beauty and personal care surged to Rs 1,913 from Rs 1,837
Average order value in fashion category surged to Rs 3,257 from Rs 3,170