Nykaa: Remains upbeat despite of ongoing headwinds

31 May 2022, Mumbai:

Despite Q4FY’22 earnings not being as expected, Nykaa remained upbeat about growth of consumer demand in India. The e-commerce company reported 71 per cent GMV growth and 55 per cent revenue growth during the year until March.

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Consolidated net profit of its parent company declined 57 per cent to Rs 7.57 crore during the fourth quarter ended March 2022, mainly on account of new investments.

Makeup, skincare, and haircare categories of grew 40 per cent, 50 per cent, and 60 per cent respectively.

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Since the company is looking to expand more into physical stores and new businesses, EBITDA margins are expected to remain constant at last year’s range.

While Nykaa’s Q4 earnings were operationally weak despite strong revenue growth, higher marketing expenses and investments in new businesses are hurting the company’s performance, says Anchit Nayar, CEO-Beauty E-commerce. The company will continue to expand its physical presence.

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