FSN E-Commerce Ventures (Nykaa) announced Q2FY23 results: Consolidated: GMV grew 45% YoY to Rs 23,457 million in Q2FY23 Revenue from operations grew 39% YoY to Rs 12,308 million in Q2FY23 Gross margin increased to 45.3% in Q2FY23 vs 42.7% in Q2FY22 EBITDA grew 112% YoY to Rs 611 million in Q2FY23. EBITDA margin improved to 5.0% in Q2FY23 vs 3.3% in Q2FY22 Profit before Tax grew 542% YoY to Rs 88 million in Q2FY23 Net Profit for the period grew 344% YoY to Rs 52 million in Q2FY23 Q2 FY2023 performance according to Falguni Nayar, Executive Chairperson, MD, and CEO: "Our business has delivered sustainable and strong growth while investing in capabilities for the future. Our online and offline presence in Beauty has delivered strong growth with improving margins. There has been a structural improvement in fulfilment costs as we move to regional warehouses. Post covid, our accelerated investments in new store rollouts as well as store upgradation have resulted in improved footfalls and higher same-store sales. Consumer demand for premium beauty, personal care and wellness is showing signs of buoyancy as we gear up for a promising H2FY23. We're committed to building a unique customer proposition in Fashion; aided by investments in a differentiated product, collaborations with global brands and expansion in the breadth & depth of our owned brand portfolio. Our merchandise partnership with Revolve provides us access to a successful ecosystem that has proven capabilities. Our focus on curation and discovery in fashion is evident, as new season merchandise accounted for 24% of Nykaa Fashion GMV. International brands are at 13% of the western wear category GMV in Q2 FY23. Repeat buyers in Fashion now contribute 66% of Q2FY23 GMV, giving us confidence in our product proposition. Digital marketing costs for the fashion business are slightly higher than during the covid period, resulting in marketing costs sustaining at Q2 FY22 levels. We are investing in growth engines of the future, particularly SuperStore by Nykaa. International business, which includes the venture we have with the Apparel Group in the GCC, is promising. True to the Nykaa way, each of these efforts is towards building the business model in a sustainable manner." Result PDF
Conference Call with FSN E-Commerce Ventures Management and Analysts on Q2FY23 Performance and Outlook. Listen to the full earnings transcript. Management in attendance: Falguni Nayar and Senior Team