Nykaa Q1 Results FY2023, Net Profit at Rs. 50 Million

On 5th August 2022, Nykaa announced its quarterly results for the first quarter of FY2023.

Q1FY23 Key Highlights:

- The company reported a Revenue at Rs. 11484 million with a growth of 41% YoY.

- Profit Before Tax was reported at Rs. 83 million with a growth of 165% YoY.

- The company reported its Net profit at Rs. 50 million, which grew by 42% YoY.

Segment Highlights:

Beauty and Personal Care:

- Gross merchandise value (GMV) grew 39% YoY to Rs.14,888 million in Q1 FY2023  

- Annual Unique Transacting customers grew 33% YoY to 8.6 million as of June 30, 2022  

- Orders grew 40% YoY to 8.1 million in Q1 FY2023  

- The beauty and Personal Care Contribution margin has improved by 530 bps YoY in Q1 FY2023 led by gross margin improvement and efficiency in fulfillment expense

Fashion:

- Gross merchandise value (GMV) grew 59% YoY and 21% QoQ to Rs. 5,820 million in Q1 FY2023 

- Fashion Gross merchandise value (GMV) contributed 27% to Consolidated Gross merchandise value (GMV) in Q1 FY2023  

- Annual Unique Transacting customers grew 99% YoY to 2.0 million as of June 30, 2022  

- Fashion contribution margin has been positive and grew by 90 bps sequentially in Q1 FY2023 

Others:

- Investment in new businesses to expand across the value chain and to diversify in new lifestyle categories  

- Others Gross merchandise value (GMV) grew 153% YoY to Rs. 850 million, contributing to 3.9% of the Consolidated Gross merchandise value (GMV) in Q1 FY2023  

- SuperStore by Nykaa has 45,000+ transacting retailers across 500+ cities with 165 brands listed as of June 30, 2022  

- Others include Nykaa’s new businesses NykaaMan, eB2B platform SuperStore by Nykaa, and International  

Business Highlights:

- Nykaa partnered with Estee Lauder to bring the much-awaited and famous international brand "The Ordinary" to India  

- Nykaa Fashion expanded the Global Store by bringing the best of international brands such as Little Mistress, LC Waikiki, Twist, Koton, and Oxxo directly to Indian consumers  

- Nykaa Fashion expanded its portfolio of Owned Brands by launching Twig & Twine – a home décor brand, Gloot – men’s innerwear and athleisure category, Azai – Accessories category & Kica – Athleisure wear category 

- Accelerating its offline expansion this quarter with 8 physical stores across cities like Pune, Coimbatore, Delhi, Ranchi, Ahmedabad, and Kolkata. Nykaa’s total physical store count was 113 across 52 cities as of June 30, 2022. In Q1 FY2023, Nykaa expanded warehouse storage space by 2.3 lacs sq. ft. by opening 7 new warehouses. There were 30 fulfillment centers across 14 cities with a total capacity of 10.5 Lacs sq. ft. as of June 30, 2022.

Commenting on the results, Falguni Nayar, Executive Chairperson, MD, and CEO, said: “Our business continues to grow across the verticals, despite an adverse and challenging macroeconomic environment, demonstrating the strength of our business fundamentals and unique customer-first experiences. The beauty vertical, online and offline, is witnessing growth momentum while building efficiencies across the value chain. As a result of the significant discipline that we ensured in our retail store business during the COVID-affected periods, we are now witnessing the positive effect of scale on our unit economics, especially with the return of offline shopping behavior. The consumer demand for beauty, personal care and wellness is also showing early signs of recovery and we are gearing up for a promising festive season this year. 

We continue to invest in building a unique customer proposition in fashion, with developments in platform experience and assortment depth. We also strengthened our purpose-led owned brands portfolio, through the launch of Twig & Twine, Gloot, Azai, and the acquisition of Kica. The sequential growth of Fashion over Q3 and Q4 of last year comes as a result of these building blocks along with the industry witnessing a revival as factors such as mobility and travel improve. 

We remain focused on investing in growth engines of the future, particularly Superstore by Nykaa, Nykaa Man and international operations. In each of these, our efforts are towards building the business model in a sustainable manner. We are witnessing promising revenue growth in these ventures, giving us confidence in our ambitions.”