nykaa: Nykaa profit halves as marketing, fuel costs balloon

May 27, 2022

[ad_1]

BENGALURU: Indian magnificence merchandise retailer Nykaa reported a 49% fall in quarterly web revenue on Friday, hit by hovering gas and logistics prices at a time when the corporate is ramping up its advertising spend to attract in additional prospects.
FSN E-Commerce Ventures Ltd, Nykaa’s dad or mum, which has posted steep declines in income in all three quarters since going public, has spent extra on beefing up its shipments and warehouse capability to sidestep provide points.
Headed by Falguni Nayar, the cosmetics-to-fashion platform has been aggressively choosing up stock from international manufacturers to fulfill the swelling home demand for make-up, fragrances and skincare merchandise within the run as much as the pre-wedding season.
Whereas that helped Nykaa’s income from operations bounce 31% to 9.73 billion Indian rupees ($125.45 million), rising inflation has put a damper on spending energy of lower-income shoppers in India.
“Inflationary pressures are build up extra so within the first quarter this 12 months,” Chief Govt Falguni Nayar instructed Reuters, however famous that increased meals and gas costs haven’t dissuaded the corporate’s high-end customers.
Nykaa, which has a 28.6% market share within the home on-line magnificence and private care merchandise area, had quarterly gross merchandise worth (GMV), or the financial worth of orders throughout the corporate’s platforms, of 17.97 billion rupees, up 45% from final 12 months.
Its whole orders climbed to eight.6 million from 6.2 million, aided by sturdy development in its vogue section.
For the fourth-quarter ending March 31, Nykaa’s whole prices jumped 35% to 9.79 billion rupees, together with a 48% swell in success prices, whereas its advertising and commercial expense surged 66%.
Consolidated web revenue fell to 85.6 million rupees from 168.8 million a 12 months earlier.



[ad_2]