Fsn E-commerce Ventures Ltd. · NSE:NYKAA
Fsn E-commerce Ventures — Q1 FY25 Earnings Presentation
57 slides from Fsn E-commerce Ventures's earnings presentation, August 2024
Slide 1: Investor Presentation Quarter ended June 30, 2024
Investor Presentation Quarter ended June 30, 2024 FSN E-Commerce Ventures Limited 1
Slide 2: Table of Contents
Table of Contents 1 Performance Highlights 2 Beauty Multi Brand Retail 3 Fashion 4 eB2B: Superstore by Nykaa 5 Nykaa’s House of Brands 6 Financial Performance 2
Slide 3: Performance Highlights
Performance Highlights NKAL
Slide 4: Q1FY25 Performance Summary
Q1FY25 Performance Summary GMV Revenue from Operations Gross Profit Rs. 33,209 mn Rs. 17,461 mn Rs. 7,560 mn +25% YoY Growth +23% YoY Growth +22% YoY Growth EBITDA Adj. EBITDA PBT Rs. 961 mn Rs. 1,090 mn Rs. 221 mn +31% YoY Growth +44% YoY Growth 127% YoY Growth Margin* 5.5% (34 bps YoY) Margin* 6.
Slide 5: Industry leading growth across Beauty and Fashion
Industry leading growth across Beauty and Fashion All figures in Rs mn Beauty Fashion 28% YoY 15% YoY 25,429 7,741 GMV 19,908 6,758 Q1FY24 Q1FY25 Q1FY24 Q1FY25 23% YoY 21% YoY 1,486 15,935 Revenue 1,225 12,984 Q1FY24 Q1FY25 Q1FY24 Q1FY25 5
Slide 6: One Nykaa: Key highlights for the quarter
One Nykaa: Key highlights for the quarter Customers Brand Partners Beauty Stores Fulfilment Content 35 mn 6,700+ 200 44 1 bn reach Cumulative Customer Global & Domestic Stores* Warehouses** created through multiple IPs Base Brands milestone achieved [servicing 98% pincodes] Category creation through
Slide 7: Beauty Multi Brand Retail
Beauty Multi Brand Retail 7
Slide 8: New customer acquisition driving order growth
New customer acquisition driving order growth Annual Unique Transacting New Customer Acquisition Orders (mn) Customers (mn) 27% YoY 21% YoY 26% YoY 1.3x 13.1 12.4 10.9 x 9.9 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 8
Slide 9: Nykaa continues to be the retailer of choice for BPC brand partners
Nykaa continues to be the retailer of choice for domestic and international BPC brand partners Colour Cosmetics Skincare Haircare Bath & Body Fragrances Other Categories
Slide 10: Nykaa is doubling down on prestige fragrances
Nykaa is doubling down on prestige fragrances and aims to gain significant market share Prestige Fragrances are a focus area for Nykaa and have Illustrative list of key brands on Nykaa witnessed high growth in Q1 FY ’25… 74% ↑ + many more to be added Q1FY22 Q1FY23 Q1FY24 Q1FY25 … with the ambition t
Slide 11: Kickstarted the year of stepification through multiple owned IPs
Kickstarted the year of stepification through multiple owned IPs Setting Spray Suncreen growth Hair Serum Q1FY25 GMV (YoY) 1.3x 1.7x 2.6x of Color Cosmetics of Skin category of Hair category category 420 mn Reach in Q1FY25 11
Slide 12: Healthy Hair Habits (HHH): Nykaa's Flagship Hair Event
Healthy Hair Habits (HHH): Nykaa’s Flagship Hair Event to drive regime upgradation and basket building Objective: Drive ‘stepification’ by empowering consumers with a haircare routine, Educating about high efficacy solutions to solve specific hair concerns 360-degree activation On-platform Off-platf
Slide 13: Nykaa Play: Gamified on-app beauty discovery experience
Nykaa Play: Gamified on-app beauty discovery experience Shoppable content, livestreaming, games, influencer stores and more.. Improving product discovery and Building on engagement to consideration improve visit frequency 35% higher 30% higher cart addition* Visits per visitor* Leveraging play for d
Slide 14: Achieved 200 stores milestone in Jul'24
India’s largest specialized beauty store network Achieved 200 stores milestone in Jul’24 Store Count Next 100 stores 200 in 2 yrs First 100 stores in 8 yrs 105 First physical 53 store launch in Delhi Jun'14 Dec'19 Mar'22 Jul'24 Strong presence across 1.9 L sq. ft 72 cities Total Area (as on Jun’24)
Slide 15: New Store Launches: Nykaa Luxe
New Store Launches: Nykaa Luxe Dehradun Jaipur 15
Slide 16: New Store Launches: Nykaa On Trend
New Store Launches: Nykaa On Trend Rourkela Amritsar 16
Slide 17: Masterclasses and offline events in Q1 FY25
70 masterclasses and offline events in Q1 FY25 10 Prestige Brand Events 60 Masterclasses in store and in mall atriums 60 events across 30+ cities 7,000+ registrations Partnership with the best of regional makeup artists to drive education and awareness 17
Slide 18: Highly invested in providing a personalized experience to each user
Highly invested in providing a personalized experience to each user Cohort based discovery Hyper personalized collection widget Stepification via Routines Widget ▪ Improved luxe product discovery & ▪ Based on user’s brand x category affinity ▪ Recommending relevant beauty routines revenue share basi
Slide 19: Getting closer to the customers to drive delight in delivery
Getting closer to the customers to drive delight in delivery Warehouses* (#) Capacity (mn sq. ft.) Order to delivery (days) 44 1.5 4.0 2.2 18 0.6 FY21 Q1FY25 FY21 Q1FY25 FY21 Q1FY25 Increased by 2.4x in 3 years Increased by 2.5x in 3 years Reduced by 45% in 3 years * includes 3P managed warehouses a
Slide 20: Increasing Same day/Next day delivery share in Top cities
Increasing Same day/Next day delivery share in Top cities Jun’24 Sep’24E 12 120+ Major cities cities 50% 50% Share of SDD/NDD 70% - 80% Major cities Other cities 50% 65% City Coverage Of Nykaa’s order volume Of Nykaa’s order volume comes from Top 12 cities comes from 120+ cities Same Day /Next Day 2
Slide 21: Fashion
Fashion FASHION
Slide 22: Healthy growth in a muted demand environment
Healthy growth in a muted demand environment GMV (Rs mn) Revenue (Rs mn) Growth in focus categories (GMV) Existing Customers New Customers 15% YoY 21% YoY 34% YoY Women Western wear 7,741 1,486 6,758 47% Lingerie 54% YoY 56% 1,225 44% 53% Women Athleisure 110% YoY Q1FY24 Q1FY25 Q1FY24 Q1FY25 Revenue
Slide 23: Strengthening assortment across key properties
Strengthening assortment across key properties Luxe Store Hidden Gems First in Fashion 37% 20% GMV YoY GMV YoY [Indian designer luxury] 24% GMV contribution 200+ 21% Brands* GMV YoY New Launches 300+ 1,400+ Brands* Brands* Latest and Niche curated homegrown fashion labels collections * Total brand c
Slide 24: Improved customer mix driving improvement across metrics
Improved customer mix driving improvement across metrics on platform GMV share from Tier 1 cities GMV share from premium shoppers 45% 44% 43% 36% Q1FY24 Q1FY25 Q1FY24 Q1FY25 Reduction in leakages Order to Visitors (%) X 3.0% 0.9x 2.5% Q1FY24 Q1FY25 Q1FY24 Q1FY25 24 Data is for NykaaFashion.com
Slide 25: Stay Stylish Campaign: Positioning Nykaa Fashion
Stay Stylish Campaign: Positioning Nykaa Fashion as the ultimate style destination 4 Brand Films launched in Jun’24 with 1 Celeb & 3 High Impact KOL’s 360 degree Amplification 127 mn • Owned media assets Total Reach • Influencers, • Events & Activations 200+ • Media Partnerships Media Clips 25
Slide 26: Significant expansion of ~500 bps in profitability
Significant expansion of ~500 bps in profitability Q1FY25 Fashion Vertical (as % of NSV) YoY Change Driving factors Improved marketing income, Gross Margin 49.4% 356 bps services related income and platform fees Leakages optimization and Fulfilment expenses 9.7% 167 bps increased share of land shi
Slide 27: eB2B: Superstore by Nykaa
SUPER eB2B: Superstore by Nykaa STORE
Slide 28: Driving GMV growth as Superstore continues to widen reach
Driving GMV growth as Superstore continues to widen reach GMV (Rs mn) Cumulative Transacting Retailers (‘000) 72% YoY 65% YoY 4x 5x 210 128 45 Q1FY23 Q1FY24 Q1FY25 Q1FY23 Q1FY24 Q1FY25 Cities 450+ ~700 1,000+ 28
Slide 29: Strong order growth YoY with improvement in order-level metrics
Strong order growth YoY with improvement in critical order-level metrics Orders (‘000) AOV (Rs) Average Basket Size (ABS) (#) 21% YoY 11% YoY 45% YoY 383 264 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Driven by increasing retailer network Increasing share of premium brands and Driven by increase in p
Slide 30: Contribution Margin improvement of 520 bps YoY
Sales mix, scale and efficiencies leading to margin and unit economics improvement Gross Margin Fulfilment Cost 274 bps 195 bps Q1FY24 Q1FY25 Q1FY24 Q1FY25 • Moving from 3P to owned warehouses • Increased Ad-Income share • Strong inventory management with optimum space • Improved featured brand shar
Slide 31: Nykaa's House of Brands
Nykaa’s House of Brands FASHION 31
Slide 32: Our owned brands continue to scale
Our owned brands continue to scale Annualized GMV runrate (Rs mn) 2 yrs journey Q1FY23 Q1FY25 8.3x 900+ 7,500 Core 1.6x 1,000+ 1,600+ 2.5x 650+ 1,600+ 6.6x Emerging ~30 200+ [KICA acquired in Apr’22] 32
Slide 33: Targeted intervention to drive growth across each brand lifecycle
Targeted intervention to drive growth across each brand lifecycle Beauty owned brands Fashion owned brands Focus Area High Growth Maintain momentum with investment in marketing brands and offline expansion Mature Accelerate growth by brand revamping innovation funnel Small brands Drive awareness, br
Slide 34: Beauty Owned Brands: Innovation fuelling brand's growth
Beauty Owned Brands: Innovation fuelling brand’s growth Lip Glaze Sunscreen Innovative product formats to increase category depth New Lip formulation driving 2x category for the brand Among Top3 sunscreen brand across all marketplaces Rank 4 on highlighters for top variant Introducing new Liquid hig
Slide 35: Kay Beauty: Foundation Marketing Campaign Case Study
Kay Beauty: Foundation Marketing Campaign Case Study 40 mn Impression generated 2X Faster growth than Category ~10% Contribution to Kay Beauty GMV (Q1) 35
Slide 36: Beauty House of Brands: 47% YoY growth
Beauty House of Brands: 47% YoY growth GMV* of Beauty owned brands (Rs mn) GMV Channel Mix 47% YoY 3,406 19% Rs Q1FY25 3,406 52% 2,310 19% mn 10% Nykaa Online Nykaa Stores GT/MT (including eB2B) 13% Others** Q1FY24 Q1FY25 19% Rs 2,310 54% Owned brands expanding presence in offline channels - Q1FY24
Slide 37: Fashion House of Brands: Nykaa Platforms driving growth
Fashion House of Brands: Nykaa Platforms driving growth GMV of Fashion owned brands (Rs mn) GMV Channel Mix 916 903 18% Rs Q1FY25 903 56% 21% mn 5% Nykaa Online Nykaa Stores (Nykd EBOs) GT/MT 21% Q1FY24 Q1FY25 Others* Rs Q1FY24 916 50% GMV growth from 3P channels (-14% YoY) was mn muted, which was c
Slide 38: Nykaa expands its stake in Dot & key to 90%
Nykaa expands its stake in Dot & key to 90% Brand Overview Investment Update Differentiated skincare solutions that are • FSN E-commerce Ventures Limited is acquiring effective, safe, and fun to use an additional 39% stake in the current financial year for a total amount of Rs 265 Crs • FSN E-commer
Slide 39: Dot & Key: Differentiated products across large categories
Dot & Key: Differentiated products across large categories Differentiated assortment Clutter breaking packaging Focusing on core categories Water light Vit C Sunscreen Moving away from typical oil based and heavy on the skin to formulation that was super light on their consumer skin. SPF Based Lip B
Slide 40: Dot & Key: Investing in Innovation and R&D capabilities
Dot & Key: Investing in Innovation and R&D capabilities In-house R&D capabilities Rigorous and Agile NPD process Well defined and structured NPD process 62 trials of sunstick to deliver final products Agility in innovation In-house R&D lab, fully equipped lab to help create and test formulations in
Slide 41: Dot & Key: Brand Love created
Dot & Key: Brand Love created ● Average Rating is 4.4/5.0 (based on ● Most loved reviews on – Product quality and 35k+ reviews) on Nykaa innovative packaging ● ~85% reviews are positive ● Most reviewed products are Moisturizer, Sunscreen and Facewash Customer Perception 45% - 50% Customer retention
Slide 42: Nykaa to acquire majority stake in Earth Rhythm
Nykaa to acquire majority stake in Earth Rhythm Brand Overview Investment Update D2C new age brand specializing in skincare, • FSN E-commerce Ventures Limited is acquiring a majority makeup, haircare and bath and body products stake in Earth Rhythm • This in addition to the 18.57% stake acquired in
Slide 43: Earth Rhythm: Differentiated Positioning – Sustainable and Inclusive
Earth Rhythm: Differentiated Positioning – Sustainable and Inclusive Innovative shampoo and Accessories (Reusable) Inclusive and Gender-Neutral brand ethos conditioner bar solution Eco-friendly packaging design using recyclable materials Diverse skincare range across skin Lower water tone, age and g
Slide 44: Earth Rhythm: Continuous Investments in R&D
Earth Rhythm: Continuous Investments in R&D R&D Being 1st in many.. In-house fully equipped R&D Lab India’s first water free 50% Sunspray Innovations in FY24 First to launch breakthrough products such a Gel to milk series 15 and Phyto series New SKUs in FY24 In house testing and stability studies en
Slide 45: Financial Performance
Financial Performance NIA 45
Slide 46: Topline growth and profitability momentum sustains
Topline growth and profitability momentum sustains GMV (Rs mn) Revenue (Rs mn) 25% YoY 23% YoY 24% CAGR 33,209 23% CAGR 17,461 Maintaining 14,218 26,672 strong topline 21,558 11,484 growth Q1FY23 Q1FY24 Q1FY25 Q1FY23 Q1FY24 Q1FY25 EBITDA (Rs mn) Adj. EBITDA (Rs mn) 31% YoY 44% YoY 44% CAGR 48% CAGR
Slide 47: Profit and Loss Statement
Profit and Loss Statement All Values in Rs mn Particulars Q1FY25 Q1FY24 YoY Revenue from Operations 17,461 14,218 23% Gross Profit 7,560 6,186 22% Gross Margin 43.3% 43.5% -21 bps Fulfilment expenses 1,667 1,357 23% As % of revenue from operations 9.5% 9.5% 0 bps Marketing and S&D expenses 2,484 1,9
Slide 48: Quarterly Vertical Performance: Business Wise
Quarterly Vertical Performance: Business Wise (All amounts in Rs mn, unless otherwise stated) Q1 FY25 Q1 FY24 Particulars Beauty Fashion Others Total Beauty Fashion Others Total GMV 25,429 7,741 39 33,209 19,908 6,758 6 26,672 Growth 28% 15% 25% 28% 13% 24% NSV 14,695 2,449 39 17,183 12,121 2,089 5
Slide 49: Key Highlights of Vertical Reporting
Key Highlights of Vertical Reporting Improvements Levers • Beauty gross margin remains steady • Expansion of Fashion gross margin driven by marketing income, services related income Gross margin expansion of 48 bps YoY and platform fees • Superstore gross margin expansion led by improved Ad-income a
Slide 50: Focus on a leaner balance sheet
Focus on a leaner balance sheet Fixed Assets Turnover (x) Working Capital Days ROCE (%) 10.3 8.3% 44 42 7.5% 9.1 41 6.6% 7.0 FY23 FY24 Q1FY25 FY23 FY24 Q1FY25 FY23 FY24 Q1FY25 Focus on capital efficiency resulting in consistent improvement in ROCE 50
Slide 51: Business restructuring initiatives and investment updates
Business restructing initiatives and investment updates ❑ Acquisition of western wear and accessories business by way of slump sale from Nykaa Fashion Limited to FSN E- Commerce Ventures Limited: After the successful completion of phase one in which Athleisure and Lingerie business was transferred i
Slide 52: Thank you
Thank you 52
Slide 53: Glossary
Glossary Term Description Unique customers identified by their email-id or mobile number who have placed at least one Order on our websites, mobile applications or physical stores during the last 12 months ended as on measurement date. Annual Transacting Customers, with respect to beauty and persona
Slide 54: Disclaimer
Disclaimer By attending the presentation or by reading the presentation slides you agree to be bound as follows: This Presentation is prepared by FSN E-Commerce Ventures Limited (“Company”) and is for information purposes only without regards to specific objectives, financial situations or needs of
Slide 55: Profit & Loss Statement
Profit & Loss Statement (All amounts in Rs mn, unless otherwise stated) Quarter Ended Year Ended Particulars Jun-24 Jun-23 Mar-24 YoY Growth QoQ Growth Mar-24 Mar-23 YoY Growth Revenue from Operations 17,461 14,218 16,680 23% 5% 63,856 51,438 24% Cost of goods Sold 9,901 8,032 9,577 23% 3% 36,464 28
Slide 56: Quarterly Vertical Performance: Business Wise
Quarterly Vertical Performance: Business Wise (All amounts in Rs mn, unless otherwise stated) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Particulars Beauty Fashion Others Total Beauty Fashion Others Total Beauty Fashion Others Total Beauty Fashion Others Total GMV 19,908 6,758 6 26,672 21,559 7,872 8 29,438 25
Slide 57: Key Operational Metrics
Key Operational Metrics Particulars Unit Q1FY24 Q1FY25 YoY Visits Beauty mn 269 330 23% Fashion mn 126 127 0% MAUV Beauty mn 27.3 32.6 19% Fashion mn 16.6 15.8 -5% Orders Beauty mn 9.9 12.4 26% Fashion mn 1.5 1.7 10% AOV Beauty Rs 1,922 1,924 0% Fashion Rs 4,058 4,237 4% AUTC Beauty mn 10.9 13.1 21%
FSN E-Commerce Ventures — Q1 FY25 Earnings Presentation on 6ix