(Reuters) -Indian beauty retailer Nykaa’s quarterly profit more than trebled on Friday, boosted by steady demand for makeup and skincare products as well as new tie-ups with global brands.
The company, formally known as FSN E-Commerce Ventures, posted a profit of 344.4 million rupees ($3.9 million)for the quarter ended September 30, up from 100.4 million rupees a year ago.
The quarterly results show Nykaa is sharpening its focus on profitability by doubling down on its core beauty business.
That has meant scaling up strategic partnerships — including the global rollout of Katrina Kaif’s Kay Beauty, and Rihanna’s Fenty Beauty – and expanding its offline presence, enabling it to become a full-stack beauty and lifestyle platform.
The additions have helped Nykaa cater to India’s $28-billion beauty and personal care market – which has remained resilient despite a broader consumption slowdown.
Revenue from the beauty business rose 25% to 21.32 billion rupees, buoyed by the inclusion of premium brands such as Chanel, Korean skincare label Aesura, and sunscreen maker Supergoop.
Sales for its fashion vertical, which includes apparel and accessories from labels like Victoria’s Secret and Titan’s Mia, grew 21%, lifting overall revenue by 25% to 23.56 billion rupees.
Nykaa added 19 beauty stores during the quarter, taking its total count to 265.
Gross margins expanded to 44.9% from 43.8% a year earlier, supported by a greater focus on premium offerings.
($1 = 87.8950 Indian rupees)
(Reporting by Kashish Tandon in Bengaluru; Editing by Ronojoy Mazumdar)
