In its performance update for the first quarter (Q1) of FY24, Nykaa said its beauty and personal care (BPC) business continues to remain strong despite an overall discretionary spending slowdown.
“Our BPC business NSV (net sales value) for the quarter is expected to grow in the early twenties YoY. This is supported by strong urban demand in the category,” the update read.
Nykaa said its fashion business has witnessed relative resilience through gradual improvement in order volume with sustained average order value YoY despite the fall in consumer spending.
Nykaa’s Fashion NSV for Q1FY24 is expected to grow in low-to-mid-teens YoY, the company said.
Nykaa parent FSN E-Commerce Ventures reported a 71.83% year-on-year (Y-o-Y) fall in its March quarter (Q4) net profit to Rs 2.4 crore even as its consolidated Q4 revenue rose 33.75% to Rs 1,301 crore.
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In FY23, Nykaa’s revenue from operations rose 36% to Rs 5,144 crore from Rs 3,774 crore in FY22. Annual profit plummeted 53% to Rs 19.26 crore.The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved by 3 basis points quarter-on-quarter (Q-o-Q) to 5.4%, while EBITDA shot up 84% to Rs 70.6 crore during the quarter.
The company’s total tax expenses of Rs 4.35 crore took a toll on the bottomline. In the year-ago period, Nykaa had reported a tax benefit of Rs 1.76 crore.
In April, Nykaa announced the appointment of several senior executives across its technology, finance, business and marketing teams. These appointments come after the beauty retailer saw several top-level exits.
Since the beginning of 2023, five members of Nykaa’s leadership team have quit. They are chief commercial operations officer Manoj Gandhi; chief business officer of Nykaa Fashion Gopal Asthana; chief executive of the wholesale business Vikas Gupta; Nykaa fashion’s Owned Brands business vice president Shuchi Pandya; and fashion unit vice president of finance Lalit Pruthi.