Nykaa Q4 Results: Net profit zooms 187% YoY; Beauty biz GMV growth highest in 6 quarters; 5 key highlights

Nykaa Q4 Results: FSN E-Commerce Ventures, which operates beauty and fashion retailer Nykaa, announced its January-March quarter results for fiscal 2023-24 (Q4FY24) on Wednesday reporting a massive four-fold jump in the quarterly net profit attributable to shareholders on customer retention over heavy discounts. The net profit zoomed to 187 per cent to ₹6.9 crore in the fourth quarter of FY24, compared to ₹2.4 crore in the year-ago period.

The Falguni Nayar-led company’s revenue from operations in the March quarter rose 28 per cent to ₹1,668 crore, compared to ₹1,302 crore reported in the corresponding period last year. The revenue was driven by affluent consumers’ preference for luxury makeup and fragrances from brands such as Estee Lauder, Bobbi Brown, and Dior.

Also Read: Nykaa’s Q4 net profit jumps to ₹9.07 crore

Here are 5 key highlights of Nykaa Q4 Scorecard:

1.Nykaa BPC Segment

Nykaa’s beauty and personal care (BPC) segment, the biggest in terms of revenue contribution, saw a 30 per cent growth in gross merchandise value or GMV during the March quarter–the highest growth in the last six quarters, with accelerated customer acquisition driving superior order growth.

The BPC segment, the biggest in terms of revenue contribution, crossed the milestone of $1 billion or ₹8,340 crore in GMV during the entire fiscal FY24, reporting a growth of 25 per cent year-on-year (YoY). Nykaa’s physical retail footprint as of March 31, 2024 was 187 stores across 68 cities, an addition of 42 stores during the year.

2.Nykaa Fashion

Nykaa’s end-of-season sales and the ‘Pink Love Sale’ offered ahead of Valentine’s Day fuelled volumes, the company said in its quarterly update. The fashion business has deepened its position as a premium women’s fashion destination this year.

Nykaa Fashion GMV witnessed growth of 27 per cent YoY in FY2024 and a growth of 27 per cent YoY in Q4 FY2024 as Nykaa continued to push out premium clothing. ‘’This was a result of high growth across our core categories of women’s Indian wear and western wear as well as ramping up of emerging categories like lingerie and active wear,” said the company in its statement.

Also Read: Falguni Nayar says Nykaa will actively defend its turf amid competition from conglomerates: Report

3.Mergers & Acquisitions

In line with its expansion strategy, the FSN E-Commerce board approved the acquisition of Nykaa Fashion’s western wear and accessories business during the quarter through a slump sale. ;;The acquisition will help streamline and consolidate owned brand business in a single entity, similar to beauty owned brands business which are already within FSN E-commerce Ventures”, said the company in its regulatory filing to the stock exchanges.

Nykaa Fashion was merged with Illuminar Media’s LBB, a digital lifestyle platform acquired in August 2022, to bolster content discovery and delivery capabilities. The company’s board also approved an investment of ₹20 crore in FSN International, a wholly owned subsidary of FSN E-Commerce and an international exporter and retailer of BPC products.

4.Owned Brands

Nykaa’s owned brands in FY24 have crossed Rs. 1,500 crore – constituting a significantly scaled business across mature, mid-size and up and coming brands in beauty and fashion. The owned brands in beauty have grown 39 per cent in FY2024. Dot & Key – Nykaa’s new age D2C skin care brand, which was acquired in September 2021, is now at ₹600 crore GMV run rate (Q4 FY2024 annualised), scaling 10x since its acquisition.

Dot & Key is among the top skincare brands across all platforms and has several bestsellers across key categories of moisturiser, sunscreen and lip balms. Nykaa Fashion’s house of brands as well other online and offline channels now contribute 12.7 per cent to the overall fashion GMV.

5.Other announcements

Nykaa re-appointed three independent directors—Pradeep Parameswaran, Seshashayee Sridhara, and Santosh Desai—for another three years starting 1 July. Nykaa distribution business – Superstore by Nykaa, witnessed strong GMV growth of 84 per cent YoY in FY2024. Q4 FY2024 GMV growth was 81 per cent.

The distribution business has achieved scale with improving profitability as contribution margin improved 919 basis points (bps) YoY, from -27.4 per cent in FY2023 to -18.2 per cent in FY2024. Ahead of the announcement of Q4FY24 results, shares of Nykaa settled 0.99 per cent higher at ₹179.05 apiece on the BSE.