16 February 2023, Mumbai
For the third quarter Nykaa’s consolidated net profit fell by 68 per cent. The e-tailer’s revenue from operations rose by 33 per cent. The brand has been focusing on improving its ebitda margins, which have shown improvement. However, beyond ebitda, the company made some investments for the future such as lease rentals, which led to increased costs below the ebitda line.
The company incurred lease rentals on three accounts including the setting up of new physical stores, warehouses, and the expansion of office space. Over the last year, Nykaa has increased its store count to 141, including three owned fashion stores. In terms of fulfillment centers, it has 40 warehouses.
The e-tailer is focusing on opening warehouses at a more regional level to go closer to the customer, offer shorter delivery times, and further reduce last-mile costs. In addition to store and warehouse expansion, the company is also investing in opening new offices which were closed during Covid.
Nykaa is investing in acquiring new customers. In a year, for the beauty and fashion business combined, the company has acquired close to seven million plus customers.The company’s new businesses -- fashion and B2B-- saw good growth during the quarter. Fashion accounted for 25.9 per cent of consolidated GMV this quarter while B2B contributed to about six per cent.
