Operational Highlights for the Quarter:
- Beauty and Personal Care GMV grew by 38% YoY to reach at ₹ 11,859 million and Fashion GMV grew by 215% YoY to reach at ₹ 4,370 million
- Fashion GMV contribution to consolidated GMV increased to 27% compared to 14% in Q2 FY21
- Monthly Average Unique Visitors increased to 21 million with YoY growth of 62% in Beauty and Personal Care vertical and to 16 million with YoY growth of 328% in Fashion vertical
- Annual Unique Transacting Customers reached 7.2 million with YoY growth of 40% in Beauty and Personal Care vertical and 1.3 million with YoY growth of 417% in Fashion vertical
Consolidated Financial Highlights for the Quarter:
- Revenue from Operations grew to ₹ 8,853 million with a growth of 47% on YoY basis and 8% on sequential basis. Marketing support Revenue grew by 68% YoY
- Gross Profit Margin was at 42.7%, improved by 213 bps sequentially primarily led by increase in share of GMV from owned brands and increase in share of Fashion GMV
- Q2 FY22 EBITDA was ₹ 288 million with flat EBITDA Margin at 3.3% as compared to Q1 FY22. Marketing and Advertisement expense as % to Revenue from Operations was at 13.7% as compared to 11.1% in Q1 FY22
- Profit after Tax was ₹ 12 million in Q2 FY22. Profit after Tax in H1 FY22 was ₹ 47 million as compared to loss after tax ₹ (251) million in H1 FY21
Key Business Highlights for the Quarter:
- In September 2021, Nykaa acquired 51% stake in Dot & Key Wellness Private Limited (“Dot & Key”). This is the first D2C (direct to consumer) beauty brand acquired by Nykaa, allowing the company to expand its skincare, personal care and nutraceuticals owned portfolio. Founded by Suyash Saraf and Aneesha Saraf, Dot & Key is a new age brand that offers premium skincare products such as serums, face masks, toners and cleansers. The brand has recently expanded into nutraceuticals under the brand ‘IKWI’, whose products are dermatologically tested and cruelty free
- Nykaa has launched “SuperStore” in Q2 FY22. SuperStore is an eB2B platform bringing Beauty and Personal Care access and expertise to underserved channels and markets using technology. Catering to retailers across India, the SuperStore aims to support and empower them to offer the best of the Beauty and Personal Care products to their customers
- Nykaa launched a new fashion owned brand “Gajra Gang” in Q2 FY22, ode to every woman who refuses to be labeled. With a ready-to-wear launch collection of modern occasion wear, balancing focus on craftsmanship, tradition and wearability. Gajra Gang is focused on empowering women’s choices. The curation includes a modern take on traditional silhouettes including trendy lehengas, saris and co-ord sets.
- With the evolving operating environment, Nykaa has accelerated store expansion this quarter, with 8 new physical retail stores across the country including stores in Gwalior, Kochi, Mysore & Ranchi. Our total operational physical store was 84 as of September 30, 2021
- Nykaa continues to ensure access and timely delivery for customers across the length and breadth of the country. It expanded warehouse storage space by 0.37 lakh square feet during Q2 FY22 which resulted in total warehouse space of 6.65 lakh square feet as of September 30, 2021
On Q2 FY22 performance, Falguni Nayar, Executive Chairperson, MD and CEO, said:
“We have maintained growth momentum in our beauty business, accelerated our fashion business and focused on building the brand Nykaa with strong marketing campaigns both digitally and mass media. Increased marketing spends has led to acceleration of customer acquisition, also evident in the unique visitor and transacting customer metrics. The Company continues to invest in expansion of retail stores and fulfilment capacity ahead of the festive season.
In terms of new initiatives, we are pleased to announce the acquisition of the skincare brand, Dot & Key which marks a significant step towards our owned brands strategy. Suyash and Aneesha have cultivated a brand which sees great customer love, and we’re very excited to have them on board the Nykaa family.
We have also launched the Nykaa eB2B app – Nykaa Superstore. The business will be an area of focus for the quarters to come. On the fashion side, we have launched a brand, Gajra Gang, in the large and promising Indianwear space. “
Summary of Consolidated financial performance for the quarter ended September 30, 2021:
Summary of Key operational metrics for the quarter ended September 30, 2021:
