Conference Call with FSN E-Commerce Ventures Management and Analysts on Q3FY23 Performance and Outlook. Listen to the full earnings transcript.
Internet & Catalogue retail firm FSN E-Commerce Ventures announced Q3FY23 results: Consolidated Q3FY23: During the quarter, we continued to demonstrate strong GMV growth, efficiency in fulfilment and marketing expense. GMV grew 37% YoY to Rs 27,965 million, while revenue from operations grew 33% YoY in the quarter Gross profit grew 25% YoY to Rs 6,347 million in Q3 FY2023 EBITDA grew 13% YoY to Rs 782 million and EBITDA margin came in at 5.3% Profit before tax stood at Rs 127 million and net profit for the period was Rs 85 million Beauty and personal care (BPC): Strong performance continued with contribution margin expansion of 186 bps YoY GMV grew 26% YoY to Rs 19,014 million in Q3 FY2023 Monthly average unique visitors grew 22% YoY to 24.2 million, while annual unique transacting customers grew 27% to 9.6 million Orders grew 26% YoY to 9.5 million in the quarter, while order conversion improved to 3.8% in Q3FY23, a substantial improvement over same quarter last year GMV contribution from existing customers at 76% as on December 31, 2022 BPC contribution margin has improved by 186 bps YoY in Q3FY23 led by efficiency in fulfilment and marketing expenses Fashion: Focus on driving sustainable and profitable growth while delivering on the core proposition. GMV grew 50% YoY to Rs 7,244 million in Q3FY23 Fashion GMV contributed 25.9% to consolidated GMV this quarter Monthly average unique visitors grew 18% YoY to 19.4 million, while annual unique transacting customers grew 50% YoY to 2.4 million Orders grew 31% YoY to 1.7 million, while order conversion improved to 1.2% in Q3FY23 Fashion contribution margin has been positive in the quarter Others: Continuing investment in new growth verticals. Other GMV which includes new business initiatives grew 254% YoY to Rs 1,707 million, contributed 6.1% to consolidated GMV this quarter SuperStore by Nykaa has scaled to 92,415 transacting retailers across 650+ cities with 185 brands listed as on December 31, 2022 Q3FY23 performance, Falguni Nayar, Executive Chairperson, MD, and CEO, said: The business has delivered consistent strong GMV and revenue growth at 37% YoY and 33% YoY respectively. The performance has been especially good given the backdrop of eight fewer festive days in Q3FY23, compared to Q3FY22. Especially heartening is the rebound of Nykaa Fashion, that has delivered a GMV and revenue growth of 50% YoY and 43% YoY respectively. Fashion now contributes to 25.9% of GMV, and 14.6% at NSV level. Other business led by the SuperStore, our e-B2B initiative now contributes to 6.1% of the GMV from 2.4% in Q3FY22. Our EBITDA delivery has been strong, with scale efficiencies in fulfilment and marketing expenses. There's been a structural improvement in fulfilment expense as we move to regional warehouses. Our marketing efforts are focused on the order-conversion ratio, rather than chasing visits alone, which is reflective of the highest-ever conversions of 3.8% in BPC, and 1.2% for Fashion in Q3FY23. Our employee benefit expense has been kept in check post 1HFY23, as we have secured the talent we needed, and look towards enhanced productivity. Our accelerated investments in new beauty store roll-out this year has seen us add 14 stores in Q3 FY23, taking the total store count to 135 stores and making us the largest beauty specialist retailer in India. Result PDF