Nykaa’s Q2 FY24 performance and the factors driving its strong results, leading to a 5% jump in its stock price.
- Revenue Growth:
- Nykaa reported a robust growth in revenue, driven primarily by increased sales in both its beauty & personal care (BPC) and fashion segments.
- Revenue for Q2 FY24 saw a year-on-year (YoY) rise of approximately 20-25%, supported by higher demand during the festive season, which included sales events like Diwali and Dussehra.
- Profitability & Margins:
- Net profit witnessed a significant increase YoY, thanks to effective cost control, better inventory management, and a shift towards higher-margin products.
- EBITDA margin saw an improvement due to:
- Better product mix, focusing on premium categories.
- Optimization of operational expenses.
- Enhanced logistics efficiencies, reducing delivery costs.
- Operating Metrics:
- Gross Merchandise Value (GMV), which represents the total value of goods sold via the platform, showed substantial growth driven by higher average order values and a rise in customer transactions.
- The number of active users increased due to marketing campaigns and customer loyalty programs, especially targeting Tier 2 and Tier 3 cities.
- Nykaa continues to maintain a healthy conversion rate, indicating that its marketing and customer engagement strategies are effectively driving purchases.