Q2 2024 Yatsen Holding Ltd Earnings Call Transcript
Key Points
- Yatsen Holding Ltd (YSG) reported a gross margin increase to 76.7% from 74.7% in the prior year period.
- Net loss margin narrowed by 1.9 percentage points to 10.8% from 12.6% in the prior year period.
- Color cosmetics brand net revenues increased by 11.4% year-over-year, driven by the transformation of the Perfect Diary brand.
- The company launched its first global R&D hub in Shanghai, enhancing its product development and technological advancement capabilities.
- Skincare brands like Galénic and DR. WU showed steady performance with new product launches and increased visibility on platforms like Douyin.
- Total net revenue for the second quarter decreased by 7.5% year-over-year to RMB794.5 million.
- Non-GAAP net loss margin increased to 9.4% from 5.4% in the prior year period, mainly due to higher channel trapping expenses.
- Selling and marketing expenses increased to 68.6% of total net revenues from 53.2% in the prior year period.
- Net cash used in operating activities increased significantly to RMB148.2 million from RMB14.4 million in the prior year period.
- The company revised its revenue guidance downward in July due to the subdued performance of China's beauty market.
Ladies and gentlemen, good day. And welcome to the Yatsen second-quarter 2024 earnings conference call. Today's conference is being recorded.
At this time, I would like to turn the conference over to Irene Lyu, Vice President, Head of Strategic Investment and Capital Markets. Please go ahead.
Thank you, operator. Please note the discussion today will contain forward-looking statements relating to the company's future performance and are intended to qualify for the safe harbor from liability as established by the US Private Securities Litigation Reform Act. Such statements are not guarantees of future performance, and are subject to certain risks and uncertainties, assumptions, and other factors. Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and this discussion.
A general discussion of the risk factors that could affect Yatsen's business financial results is
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