Indian beauty products retailer Nykaa posts near three-fold jump in Q4 profit

Fsn E-Commerce Ventures

22/05/2024 12:57

BENGALURU, May 22 (Reuters) - India's FSN E-Commerce
Ventures  FSNE.NS , parent of online beauty products seller
Nykaa, reported a nearly three-fold jump in quarterly net profit
attributable to shareholders on Wednesday as consumers were
drawn to the heavy discounts it offered. 
    The company also announced an investment of up to 200
million rupees ($2.4 million) in unit FSN International, which
is an international exporter and retailer of beauty and personal
care (BPC) products.
    Consolidated net profit attributable to shareholders rose to
69.3 million rupees in the quarter ended March 31 from 24.1
million rupees a year ago.
    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.
    Affluent consumers also showed a preference for luxury
makeup and fragrances from brands such as Estee Lauder, Bobbi
Brown and Dior, which helped drive the 28% increase in revenue
at 16.68 billion rupees.
    Nykaa's BPC segment, the biggest in terms of revenue
contribution, saw a 30% rise in gross merchandise value (GMV) -
the monetary value of all its orders.
    Its earnings before interest, tax, depreciation and
amortization (EBITDA) margin expanded to 5.6% from 5.4% a year
ago, while overall GMV rose 28% to 124.46 billion rupees.
    Its fashion segment, which sells accessories and apparel,
saw a 27% increase in GMV, as Nykaa continued to push out
premium clothing.
    Additionally, FSN E-Commerce's board approved the
acquisition of the western wear and accessories business of
Nykaa Fashion for 1.34 billion rupees. It also gave the go-ahead
to the merger of Iluminar Media, a lifestyle, food and shopping
website, into Nykaa Fashion.
    Nykaa's shares closed 1% higher ahead of results. 

($1 = 83.2717 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Eileen Soreng)
 ((AshnaTeresa.Britto@thomsonreuters.com;))