FSN E-Commerce Ventures Ltd, the parent company of Nykaa announced that the company witnessed strong performance in the July- September quarter with consolidated net revenue growth of mid-twenties in Q2FY2025.
Performance across segments
Nykaa said that its beauty vertical has delivered a robust net revenue as well as Net Sales Value (NSV) growth of mid-twenties, with GMV growth even higher. Overall performance, it added, was strong across omnichannel retail business, owned brands as well as eB2B distribution business, ahead of the festive season. Skincare brand Dot & Key, in which Nykaa has a majority 90 per cent stake, continued to experience rapid growth. Nykaa had, earlier in August this year, announced the acquisition of additional stake in Dot & Key for Rs 265 crore. The additional stake took its total shareholding in Dot & Key to 90 per cent from 51 per cent.
Nykaa said that the beauty ecosystem in India continues to experience rapid expansion, fueled by accelerating demand, supported by rising per capita income and consumption.
The fashion vertical recorded NSV growth at around early teens. The acquisition of LBB, Nykaa’s content platform business, it said continued to perform well, delivering high growth taking the overall vertical’s revenue growth to early twenties for this quarter.
In the regulatory filing, Nykaa said that the fashion industry is expected to experience growth momentum, similar to the beauty segment, in the longer term. However, it added, consumption has witnessed subdued demand in the first half of this financial year but industry expects to see gradual revival during the second half, driven by the festive and wedding season.
Q2 earnings preview
Per a report by Elara Securities, Nykaa is estimated to post strong double-digit GMV growth of 30.0 per cent YoY in the online BPC segment. “As per our assessment, core BPC is estimated to grow 20 per cent YoY, as the demand environment is mixed. Further, ad revenue may grow 25 per cent YoY in Q2E, and support revenue growth in the online BPC segment. The Fashion segment may see a 22.0/ 24.1 per cent YoY/QoQ GMV growth, post a low base in Q1FY25,” the report stated. Overall, Nykaa’s EBITDA margin may improve 96 bps QoQ, supported by: 1) better ad revenue in the BPC segment; and 2) lower losses in the fashion/eB2B segments.
From: financialexpress
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