Nykaa announced its financial results for the quarter and full year ended March 31, 2023 on May 30 2023. Over the last two years, Nykaa has continued to prioritize growth, profitability and creating long-term sustainable value for shareholders, customers and the larger ecosystem.
India’s BPC market today stands at USD 21 billion, having grown from USD 17 billion in 2021. This growth is indicative of the increasing consumer appetite and demand which will fuel the potential of the BPC industry. With its commitment to customer-centricity and innovation, Nykaa has played a pivotal role in building India’s BPC market through consistent education, investments in technology and bringing a diverse range of Indian and international brands on the platforms.
In FY23, Nykaa’s Revenue from Operations stood at Rs 5,143.8 crore, demonstrating a strong growth of 36 per cent YoY, and the company achieved EBITDA margins of 5 per cent and EBITDA at Rs 256.0 crore, demonstrating a 57per cent growth YoY. Gross Margin expanded by 73 bps YoY. EBITDA margins expanded 65bps YoY which was aided by rationalization of fulfilment expenses (164 bps) and marketing optimisation (129 bps).
Over the last two financial years, and further to the IPO, Nykaa’s Revenue from Operations grew from Rs 2440 crore in FY21 to Rs 5143 crore in FY23 and EBITDA expanded from Rs 156 crore to Rs 256 crore in the same period. Nykaa has balanced business growth and profitability by focusing on the right drivers.
Nykaa continues to invest in technology and marketing to improve platform capabilities and drive healthy new and repeat customer behaviour, while working towards perfecting the experience in each visit. These investments have led to the order-to-visit conversions improving over the last two years, from 2.6 per cent to 3.7 per cent in BPC and 0.6 per cent to 1 per cent in Fashion, reaffirming confidence in the overall long-term strategies as they build out differentiated shopping experiences.
Falguni Nayar, Executive Chairperson, MD, and CEO, Nykaa said:
“Visit conversions, as a north star metric, speak a lot towards the platform strength of our business and customer interest in Nykaa as a brand. With steady improvements of over 40 per cent and 60 per cent 2-year growth in beauty and fashion platform conversions, our investments towards building the right technology stack as well as customer-first shopping experiences are paying off. This strong step-function growth also comes on the back of improvements across personalization capabilities, breadth and depth of product portfolio, UI UX enhancements, marketing optimizations and quality of in-bound visit traffic. This metric is reflective of a successful experience right from one downloading the app till they open their delivery package. On a visitor conversion level, this number is even higher as customers tend to browse and explore the platform and its wide offerings before finalizing a purchase.”
Nykaa’s FY23 performance has demonstrated their commitment to growing lifestyle choices for their consumers through their core beauty and fashion businesses.