Nykaa, a leading beauty and fashion ecommerce platform, has reported a consolidated net revenue growth in the “mid-twenties” for the second quarter of FY25.
In͏͏ its͏͏ quarterly͏͏ update,͏͏ Nykaa͏͏ highlighted͏͏ robust͏͏ performance͏͏ in͏͏ its͏͏ beauty͏͏ division,͏͏ with͏͏ both͏͏ net͏͏ revenue͏͏ and͏͏ net͏͏ sales͏͏ value͏͏ (NSV)͏͏ growing͏͏ in͏͏ the͏͏ mid-20%͏͏ range.͏͏ The͏͏ company͏͏ further͏͏ mentioned͏͏ that͏͏ gross͏͏ merchandise͏͏ value͏͏ (GMV)͏͏ saw͏͏ an͏͏ even͏͏ stronger͏͏ increase.
“Strong͏͏ performance͏͏ was͏͏ observed͏͏ across͏͏ the͏͏ omnichannel͏͏ retail͏͏ business,͏͏ owned͏͏ brands,͏͏ and͏͏ eB2B͏͏ distribution͏͏ ahead͏͏ of͏͏ the͏͏ festive͏͏ season.͏͏ Dot͏͏ &͏͏ Key,͏͏ a͏͏ new͏͏ age͏͏ skincare͏͏ brand,͏͏ continues͏͏ its͏͏ rapid͏͏ growth,͏͏ with͏͏ Nykaa͏͏ increasing͏͏ its͏͏ ownership͏͏ to͏͏ 90%͏͏ at͏͏ the͏͏ start͏͏ of͏͏ this͏͏ financial͏͏ year,”͏͏ the͏͏ Falguni͏͏ Nayar-led͏͏ company͏͏ stated.
Continue͏͏ Exploring:͏͏ Nykaa completes͏͏ acquisition͏͏ of͏͏ additional͏͏ 39%͏͏ stake͏͏ in͏͏ Dot͏͏ &͏͏ Key͏͏ for͏͏ INR͏͏ 265.3͏͏ Cr
Underperformance͏͏ in͏͏ Fashion Segment:
However,͏͏ Nykaa’s͏͏ fashion͏͏ vertical͏͏ continues͏͏ to͏͏ underperform,͏͏ with͏͏ NSV͏͏ growth͏͏ in͏͏ the͏͏ low͏͏ teens.͏͏ The͏͏ overall͏͏ revenue͏͏ increase͏͏ for͏͏ the͏͏ segment͏͏ reached͏͏ the͏͏ low͏͏ 20%͏͏ range,͏͏ driven͏͏ in͏͏ part͏͏ by͏͏ the͏͏ acquisition͏͏ of͏͏ its͏͏ content͏͏ platform,͏͏ Little͏͏ Black͏͏ Book͏͏ (LBB),͏͏ the͏͏ company͏͏ stated.
Notably,͏͏ Nykaa͏͏ opted͏͏ to͏͏ merge͏͏ Little͏͏ Black͏͏ Book͏͏ (LBB)͏͏ with͏͏ Nykaa͏͏ Fashion͏͏ earlier͏͏ this͏͏ year.
Optimism͏͏ for͏͏ Second͏͏ Half͏͏ Recovery:
The͏͏ company͏͏ indicated͏͏ a͏͏ slight͏͏ slowdown͏͏ in͏͏ consumption͏͏ during͏͏ the͏͏ first͏͏ half͏͏ of͏͏ FY25͏͏ but͏͏ remains͏͏ optimistic͏͏ about͏͏ a͏͏ demand͏͏ rebound͏͏ in͏͏ the͏͏ second͏͏ half,͏͏ driven͏͏ by͏͏ the͏͏ festive͏͏ and͏͏ wedding͏͏ seasons.
Nykaa’s͏͏ fashion͏͏ vertical͏͏ has͏͏ struggled͏͏ in͏͏ recent͏͏ quarters͏͏ due͏͏ to͏͏ increasing͏͏ competition.͏͏ In͏͏ Q1͏͏ FY25,͏͏ the͏͏ GMV͏͏ of͏͏ the͏͏ fashion͏͏ segment͏͏ grew͏͏ by͏͏ just͏͏ 15%͏͏ year-on-year͏͏ (YoY),͏͏ reaching͏͏ INR͏͏ 774.1͏͏ crore.
Overall,͏͏ the͏͏ company’s͏͏ consolidated͏͏ net͏͏ profit͏͏ soared͏͏ by͏͏ almost͏͏ 152%͏͏ to͏͏ INR͏͏ 13.6͏͏ crore͏͏ in͏͏ the͏͏ first͏͏ quarter͏͏ of͏͏ FY25,͏͏ compared͏͏ to͏͏ INR͏͏ 5.4͏͏ crore͏͏ in͏͏ the͏͏ same͏͏ period͏͏ last͏͏ year.͏͏ Additionally,͏͏ operating͏͏ revenue͏͏ rose͏͏ 22.8%͏͏ to͏͏ INR͏͏ 1,746.1͏͏ crore͏͏ in͏͏ the͏͏ reported͏͏ quarter,͏͏ up͏͏ from͏͏ INR͏͏ 1,421.8͏͏ crore͏͏ in͏͏ Q1͏͏ FY24.
Continue͏͏ Exploring:͏͏ Nykaa’s͏͏ Q1͏͏ FY25͏͏ net͏͏ profit͏͏ soars͏͏ 152%͏͏ to͏͏ INR͏͏ 13.6͏͏ Cr;͏͏ revenue͏͏ up͏͏ 22.8%
Middle͏͏ East͏͏ Expansion:
Nykaa͏͏ aims͏͏ to͏͏ boost͏͏ its͏͏ revenue͏͏ by͏͏ expanding͏͏ into͏͏ the͏͏ Middle͏͏ East.͏͏ To͏͏ support͏͏ this͏͏ initiative,͏͏ it͏͏ has͏͏ recently͏͏ established͏͏ two͏͏ new͏͏ subsidiaries͏͏ in͏͏ Qatar͏͏ and͏͏ Saudi͏͏ Arabia͏͏ under͏͏ the͏͏ brand͏͏ name͏͏ Nysaa.
Nykaa’s͏͏ shares͏͏ closed͏͏ 0.9%͏͏ higher͏͏ at͏͏ INR͏͏ 193.95͏͏ on͏͏ the͏͏ BSE͏͏ during͏͏ Monday’s͏͏ trading͏͏ session,͏͏ despite͏͏ a͏͏ significant͏͏ downturn͏͏ in͏͏ new-age͏͏ tech͏͏ stocks.
