FSN E-Commerce Ventures (NYKAA) Q4 22/23 earnings summary

Executive summary

• FY 2023 revenue from operations rose 36% YoY to ₹51,438 Mn; EBITDA increased 57% to ₹2,560 Mn, while PAT after associate losses fell 49% to ₹210 Mn.

• Growth was balanced across beauty and personal care (BPC), fashion and newer businesses; strategy continued to emphasize omnichannel reach, curated assortment and investment alongside profitability.

Financial highlights

• Revenue from operations ₹51,438 Mn, up 36% YoY; product sales ₹43,860 Mn, up 36%, and service revenue ₹7,301 Mn, up 37%.

• Gross profit ₹22,781 Mn, up 39%; gross margin 44.3%, up 73 bps, supported by higher owned-brand contribution.

• EBITDA ₹2,560 Mn, up 57%; EBITDA margin 5.0%, up 65 bps. Consolidated profit after tax was ₹248 Mn before ₹39 Mn associate loss, leaving ₹210 Mn profit for the year.

• Marketing and advertising was 11% of revenue, improving 129 bps; freight was 6% of revenue, improving 112 bps YoY.

• Operating cash flow was negative ₹1,402 Mn, with working capital use of ₹3,290 Mn; closing cash and cash equivalents were ₹414 Mn.

Outlook and guidance

• Long-term ambition is sustainable growth through investments in people, technology, brand partnerships, new businesses and an omnichannel lifestyle platform.

• India BPC and fashion together were described as a ₹14,200 Bn market opportunity by 2027; online penetration is projected to reach 32% for BPC and 33% for fashion.

• Management cited India per-capita BPC consumption rising from $15 to $50 and fashion from $54 to $160 by 2030; platform consumers currently spend $80 on BPC and $130 on fashion.

• GCC beauty expansion with Apparel Group is planned, with the first Dubai store expected in FY 2024.