Nykaa to scale up beauty fashion businesses in next 3 years CEO Nayar
Falguni Nayar, Nykaa MD & CEO
Beauty and personal care (BPC) brand Nykaa plans to rapidly scale up its fashion, beauty and consumer businesses over the next three years, while penetrating deeper into foreign markets, executive chairperson, founder and CEO of the company Falguni Nayar revealed during their ‘Annual Investor Day’.
“Our conviction and efforts in beauty over the last decade are now reflected in a market bound to become a $90-billion one over the next 15 years, with Nykaa continuing its industry-leading growth. The results of our more recent investments in fashion and eB2B are reflected in the past year through the much-improved profitability in both businesses. Both are expected to continue to expand margins rapidly in the next two-to-three years, leading to a positive improvement in Nykaa’s consolidated margins,” said Nayar.
“Looking ahead, beauty business’s ambition is to grow at a compounded annual growth rate (CAGR) of mid-to-late 20s till FY28,” the company said in a statement.
The firm says it has leveraged its omnichannel model to successfully address the “total addressable market (TAM) in beauty and personal care, emerging as India’s foremost beauty category creator and market builder”.
Moreover, Nykaa aims to grow its fashion business by 2.5x-3x over the next three years, as it looks to become EBITDA-positive in the near future. Its fashion business revenue grew by 27 per cent Y-o-Y to Rs 1,334 crore for the March quarter.
Nykaa’s consumer brands business has scaled rapidly over the last four years, witnessing 47 per cent CAGR in the beauty consumer brands GMV and 112 per cent CAGR in the fashion consumer brands GMV over FY21-24.
One of its brands, Dot & Key, achieved an annualised GMV run rate of Rs 600 crore in Q4 FY24 and has been profitable since January 2023. Meanwhile, Nykd by Nykaa, which boasts a consumer base of 2 million, has achieved an annualized GMV run rate of over Rs 160 crore within three years.
The company recently launched its first Nysaa store in the GCC (Gulf Cooperation Council) market. The company plans to open five new stores this year, and take this figure to 70 stores in five years.
Nykaa recently reported a 187 per cent Y-o-Y increase in its net profit to Rs 6.9 crore, attributable to shareholders, for the fourth quarter ended March 31, compared to Rs 2.41 crore in the year-ago period. The company had posted a profit of Rs 16.2 crore a quarter ago, according to regulatory filings.
The firm’s consolidated revenue from operations grew 28 per cent Y-o-Y to Rs 1,668 crore, up from Rs 1,302 crore.
For the entire FY24, Nykaa reported a 68 per cent Y-o-Y growth in net profit at Rs 32.3 crore, from Rs 19.3 crore. Consolidated revenue from operations grew by 24.1 per cent to Rs 6,385.6 crore, from Rs 5,143.8 crore reported at the end of FY23.
First Published: Jun 14 2024 | 7:21 PM IST