Online beauty and personal care (BPC) retailer Nykaa’s profit for the first quarter of FY23 slowed to 8% against 45.5% growth seen in Q1 of the previous fiscal.
The company reported a net profit of Rs 5.4 crore this time around compared to Rs 5 crore year-on-year, even as its gross merchandise value (GMV) rose 24% y-o-y to Rs 2,667.8 crore.
The FSN E-commerce Ventures-operated company, which has recently seen some of its top executives resign amid increasing competition, grew its consolidated revenue from operations to to Rs 1,421.8 crore during the quarter, a jump of 23.8% year-on-year, according to a filing with the exchange.
On the expense front, Nykaa’s cost grew 23.5% to Rs 1,418.8 crore in the duration, led by increase in cost of purchased goods and employee benefit expense.
Ebitda (earnings before interest, taxation, depreciation and amortisation), also rose 60% y-o-y to Rs 73.5 crore for the period under review.
Founded by Falguni Nayar in 2012, Nykaa counts investors such as Kravis Investment Partners, Fidelity, Lighthouse, TPG and Steadview Capital as part of its captable. Sanjay Nayar and Falguni Nayar family offices are the majority shareholders in the company, which went public in November 2021.
In the last quarter, Nykaa saw about 13.5 million unique transacting customers across its segments, with beauty and personal care as the leading one with as many as 10.3 million users. In the same quarter last year, Nykaa had 11 million customers.
The e-tailer’s beauty and personal care segment– its largest segment–reported a 19% growth in revenue to Rs 1,214.2 crore in the first quarter.
“Our beauty vertical continues to shape into an ecosystem of its own – with steady and balanced growth across our online platforms, physical footprint as well as our consumer brands,” Falguni Nayar, executive chairperson, managing director, and chief executive, Nykaa, said in a statement.
Besides partnering with brands to sell products in the category, it also sells its own brands. It owns stakes in beauty brands such as Kay Beauty, Dot & Key, Nudge, and Earth Rhythm.
Its fashion segment, where it operates by house of brands approach, reported an operating revenue of 113.8 crore during Q1FY24, a growth of 13% over the same period last year.
