Q4 2024 Fsn E-Commerce Ventures Ltd Earnings Call Transcript
Key Points
- FSN E-Commerce Ventures Ltd (BOM:543384) reported a 32% year-on-year growth in GMV for Q4 FY '24, reaching INR 3,217 crores.
- Revenue from operations grew by 28% year-on-year, amounting to INR 1,668 crores for the quarter.
- The company achieved a 32% year-on-year growth in EBITDA, with margins at 5.6%. Adjusted EBITDA showed a 56% year-on-year growth, with margins at 6.7%.
- The Beauty and Personal Care (BPC) segment saw a 30% year-on-year growth in Q4, driven by new customer acquisition and strong performance in core categories like skincare and haircare.
- The Fashion vertical reported a 27% year-on-year growth for both the quarter and the full year, with improvements in returns, RTOs, and cancellations contributing to a better P&L.
- Despite the growth, the gross margin for the BPC segment has seen a decline year-on-year, influenced by increased investment in new customer acquisition and brand-funded discounts.
- The company's overall EBITDA margin improvement has been modest, with only a 100 basis points increase over the past two years, raising concerns about the pace of profitability enhancement.
- The Fashion segment, while growing, has faced challenges in optimizing marketing costs and achieving the right customer segments, impacting its overall growth trajectory.
- The Superstore business, although showing significant growth, operates at lower gross margins, affecting the consolidated margin profile.
- The company has incurred costs related to ESOPs, GCC business investments, and corporate restructuring, which have impacted the overall profitability and are expected to continue in the near term.
Good evening, everyone. I am Garima Mishra, internet sector analyst from Kotak Institutional Equities. Welcome to FSN E-Commerce Ventures Limited Q4 FY '24 Earnings Call. From the management at Nykaa, we have Ms. Falguni Nayar, Executive Chairperson, MD and CEO; Mr. Anchit Nayar, Executive Director and CEO, Beauty E-Commerce; Ms. Adwaita Nayar, Executive Director and Co-Founder, CEO, Nykaa Fashion; Mr. Vishal Gupta, CEO, Nykaa Distribution; Ms. Rozita Norouzi, CEO, Nysaa; and Mr. P. Ganesh, CFO.
Before we start, we would like to point out that some of the statements made in today's call may be forward-looking in nature and a disclaimer to this effect has been included in the earnings presentation shared by the company earlier Please note that this call is meant for investors and analysts only by participating in this event you consent to such recording, distribution and publication. (Event Instructions)
With that, Falguni over to you for openig remarks
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