Fsn E-commerce Ventures Ltd. · NSE:NYKAA
Fsn E-commerce Ventures — Q4 FY2024 Earnings Presentation
57 slides from Fsn E-commerce Ventures's earnings presentation, May 22, 2024
Slide 1: FSN E-Commerce Ventures Limited – Investor Presentation Intimation
FSN E-Commerce Ventures Limited May 22, 2024 National Stock Exchange of India Limited BSE Limited Symbol: NYKAA Scrip Code: 543384 Dear Sirs, Subject: Investor Presentation We are enclosing the Investor Presentation for the quarter and financial year ended March 31, 2024, to be used by the Company f
Slide 2: Investor Presentation Quarter and full year ended March 31, 2024
Investor Presentation Quarter and full year ended March 31, 2024 FSN E-Commerce Ventures Limited 1
Slide 3: Table of Contents
Table of Contents 1 Performance Highlights 2 Beauty 3 Fashion 4 Nykaa’s House of Brands 5 eB2B: Superstore by Nykaa 6 Nysaa 7 Financial Performance 2
Slide 4: Performance Highlights
Performance Highlights NA
Slide 5: Q4FY24 Performance Summary
Q4FY24 Performance Summary GMV Revenue from Operations Gross Profit Rs. 32,172 mn Rs. 16,680 mn Rs. 7,102 mn +32% YoY Growth +28% YoY Growth +23% YoY Growth Margin* 42.6% (166 bps YoY) EBITDA Adj. EBITDA PBT Rs. 933 mn Rs. 1,122 mn Rs. 196 mn +32% YoY Growth +56% YoY Growth 126% YoY Growth Margin*
Slide 6: FY24 Performance Summary
FY24 Performance Summary GMV Revenue from Operations Gross Profit Rs. 1,24,461 mn Rs. 63,856 mn Rs. 27,392 mn +28% YoY Growth +24% YoY Growth +20% YoY Growth Margin* 42.9% (139 bps YoY) EBITDA Adj. EBITDA PBT Rs. 3,462 mn Rs. 3,807 mn Rs. 690 mn +35% YoY Growth +43% YoY Growth 80% YoY Growth Margin
Slide 7: Strong growth uptick across all verticals
Strong growth uptick across all verticals All figures in Rs mn BPC GMV Fashion GMV Others GMV 30% 25% 27% 27% 68% 59% 81% 84% 83,409 66,491 32,699 25,696 8,353 5,245 21,197 16,289 8,422 6,641 2,554 1,524 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 6 % % YoY Growth
Slide 8: Continued growth momentum in all verticals, serving much wider TAM
Continued growth momentum in all verticals, serving much wider TAM GMV Opportunity [2027] Overall India BPC - $ 30 bn FY21 FY24 $ 10 bn Online BPC 3-year CAGR Others, 7% $ 9 bn KIOSK Organized Offline BPC Fashion, Others, 1% Beauty – 35% 16% Fashion, 26% $ 11 bn Unorganized offline BPC Fashion – 71%
Slide 9: Beauty Multi Brand Retail
Beauty Multi Brand Retail 8
Slide 10: Beauty crosses $1 bn GMV with ~12 mn customers placing 40+ mn orders in FY24
Beauty crosses $1 bn GMV with ~12 mn customers placing 40+ mn orders in FY24 GMV (Rs mn) Visits (mn) Existing Customers New Customers 25% 24% 18% 83,409 30% 1,110 66,491 21% 937 22% 21,197 79% 16,289 78% 286 231 22% 21% 78% 79% Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 3-Year CAGR 35% 3-Year C
Slide 11: Beauty witnessed accelerated growth of 30% YoY
Beauty witnessed accelerated growth of 30% YoY GMV (Rs mn) Focus on growth enabling key levers Substantial growth in overall user base through acceleration in new customer acquisition while 24% 23% 25% 30% maintaining healthy metrics throughout the funnel Strong growth in core categories of skincare
Slide 12: Nykaa Global Store: Uniquely positioned to offer end to end services to brands
Nykaa Global Store: Uniquely positioned to offer end to end services to brands Nykaa is a brand custodian providing 360o services to its Nykaa’s strength in distribution of global brand partners brands is unparalleled Market Entry Nykaa.com Strategy 1 bn+ annual visits Registration and ~25 mn cu
Slide 13: Nykaa Global Store: Bringing the best of International Beauty to India
Nykaa Global Store: Bringing the best of International Beauty to India 12
Slide 14: Nykaa brings Global Celebrity Beauty Brand 'Fenty Beauty' to India
Nykaa brings Global Celebrity Beauty Brand ‘Fenty Beauty’ to India Exclusive India Partnership With Nykaa Launch Event (Mar-24), resounding success 30x jump in brand search on Nykaa app pre-launch Collaborated with 100+ key influencers to create X ~100 mn Reach Nykaa uniquely positioned as the partn
Slide 15: Stepification of Beauty: Leveraging content & education
Stepification of Beauty: Leveraging content & education to expand market through demand generation Skincare Haircare Colour Cosmetics Launched in Jun’23 ~270 mn Launched in Jan’24 ~165 mn Launched in Apr’24 ~160 mn Reach Reach Reach Collaboration with key beauty influencers 3.5** Category Width [vs
Slide 16: Nykaa is the only truly scaled omnichannel retailer
Nykaa is the only truly scaled omnichannel retailer Store Count (#) 187 145 1.7 lakh+ sq. ft. 104 77 retail space FY21 FY22 FY23 FY24 38 49 60 68 Cities 5.7% 6.6% 8.3% 8.2% Contribution to overall BPC GMV KIOSK Delivering expansion and growth profitably 41 79 187 stores 50%+ 105%+ GMV CAGR [FY21 – F
Slide 17: Launch of new flagship luxury format
Launch of new flagship luxury format Destination store for immersive beauty experience First store launched in Linking road, Mumbai Many more to come… 16
Slide 18: Paving the way for the future of beauty retail in India
Paving the way for the future of beauty retail in India Education through Elevated Brand Expression Experiential zones Events • Shop-in-shops and personalized spaces • Services-in-store: Skin Analyzer Tool, Aveda Dry Bar and • Beauty Bars and for brands to curate and display their Dyson Hairstyling,
Slide 19: India is becoming a priority market for global beauty companies (1/2)
India is becoming a priority market for global beauty companies – Nykaa is a trusted partner for their India journey (1/2) Unilever CEO – Hein Schumacher visit – Jan 2024 ELC CEO – Fabrizio Freda visit – Oct 2023 Amorepacific Chairman & CEO visit – Feb 2024 Beiersdorf CEO visit – Nov 2023 ULI Presti
Slide 20: India is becoming a priority market for global beauty companies (2/2)
India is becoming a priority market for global beauty companies – Nykaa is a trusted partner for their India journey (2/2) e.l.f. CEO visit – Nov 2023 P&G Global Skincare Head visit Korea visit – Oct 2023 PUIG Board visit – Jan 2024 Luxasia CEO Wolfgang Baier visit – Sep 2023 19
Slide 21: Fashion
Fashion 20
Slide 22: Nykaa Fashion now a sizable business with GMV exceeding Rs 3.2 bn
Nykaa Fashion now a sizable business with GMV exceeding Rs 3.2 bn GMV (Rs mn) NSV (Rs mn) Existing Customers New Customers 27% 25% 26% 32,699 27% 25,696 9,376 52% 7,444 64% 8.422 6,641 48% 1,859 2,324 48% 60% 36% 40% 52% Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 3-Year CAGR 71% 3-Year CAGR 60%
Slide 23: Strong growth with superior performance of our focus categories
Strong growth with superior performance of our focus categories GMV ( Rs mn) Deepened our positioning as a premium women’s fashion destination Growing ahead of market 12% 27% 40% 27% 10,109 8,422 7,631 6,537 Core 43% YoY* 92% YoY* Categories Women Indian wear Women western wear Q1FY24 Q2FY24 Q3FY24
Slide 24: Improved efficiencies leading to step function change in unit economics
Improved efficiencies leading to step function change in unit economics Order to unique visitors** Revenue share from Fulfilment Expenses* (%) Marketing Expenses* (%) existing customers 2.9% 48% 28.0% 28.0% 12.3% 2.3% 12.2% 36% 25.4% 1.8% 17% 11.4% FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 FY22 F
Slide 25: Expanding offering across high growth categories
Expanding offering across high growth categories Strengthening Women western wear assortment Ramping up activewear category Global Store 650+ 31%* Renowned GMV YoY international brands Luxe Store 120+ 68%* Luxurious western wear labels GMV YoY Hidden gems ~100 42%* 45%* Niche homegrown ~200 labels G
Slide 26: Nykaa's House of Brands
Nykaa’s House of Brands fe 2
Slide 27: Consumer brands portfolio – across categories and scale
Consumer brands portfolio – across categories and scale BEAUTY FASHION Rs 5 bn+* Rs 3 bn+* Rs 1.5 bn+* Up & coming Brands 26 * Q4FY24 Annualized GMV run rate
Slide 28: Beauty House of Brands: ~50% CAGR over FY21-FY24
Beauty House of Brands: ~50% CAGR over FY21-FY24 GMV* of BPC owned brands (Rs mn) GMV Channel Mix 39% YoY 13% 47% CAGR 10,954 Rs 20% 10,954 FY24 54% mn 7,889 13% Nykaa Online 5,578 Nykaa Stores 3,459 GT/MT (including eB2B) 5% 20% Others** FY21 FY22 FY23 FY24 Rs 7,889 FY23 mn 59% Contribution to BPC
Slide 29: Fashion House of Brands: Over 110% CAGR FY21-FY24
Fashion House of Brands: Over 110% CAGR FY21-FY24 GMV of Fashion owned brands (Rs mn) GMV Channel Mix 25% YoY 19% 112% CAGR 4,149 Rs FY24 4,149 54% 3,312 24% mn 3% Nykaa Online Nykaa Stores (Nykd EBOs) 1,372 GT/MT 28% Others* 435 Rs FY21 FY22 FY23 FY24 FY23 3,312 50% mn 21% Contribution to Fashion G
Slide 30: Achieved milestone of ~Rs 6 bn GMV run rate
Achieved milestone of ~Rs 6 bn GMV run rate Value unlock post Strategic partnership with Nykaa Annualized GMV run rate (Rs mn) 7,000+ 10x 5,800+ 1,950+ 900+ 570+ Q4FY21 Q4FY22 Q4FY23 Q4FY24 Mar'24 Among top skincare brands across platforms Significant growth across key categories High customer Profi
Slide 31: National brand Nykd, with strong consumer connect and innovation
National brand “Nykd”, with strong consumer connect and innovation Annualized GMV run rate (Rs mn) Simplifying lingerie for Indian women 14x 1,660 1,138 408 118 Q4FY21 Q4FY22 Q4FY23 Q4FY24 Achieved the scale of Rs 1,000 mn+ in less than 3 years, which took other national brands 7 -10 years Profitabl
Slide 32: eB2B: Superstore by Nykaa
eB2B: Superstore by Nykaa 31
Slide 33: NSV growth ahead of GMV growth with significant improvement in plugging leakages
NSV growth ahead of GMV growth with significant improvement in plugging leakages GMV (Rs mn) NSV (Rs mn) 1080% 84% 1370% 120% 5,973 3,483 3,251 1,587 276 108 FY22 FY23 FY24 FY22 FY23 FY24 NSV/GMV 39% 49% 58% Driven by strong growth in transacting retailers (75% Improvement in pre-delivery leakages b
Slide 34: Strong order growth YoY with improvement in critical order-level metrics
Strong order growth YoY with improvement in critical order-level metrics Orders (‘000) AOV (Rs) * Average Basket Size (ABS)* (#) 71% YoY 1,244 23% YoY 33% YoY 729 FY23 FY24 FY23 FY24 FY23 FY24 Driven by increasing retailer network Increasing share of high margin brands Driven by increase in product
Slide 35: Contribution Margin improvement of 919 bps YoY
Sales mix, scale and efficiencies leading to margin and unit economics improvement Service Income Fulfilment Cost S&D cost 165 bps 566bps 676 bps FY23 FY24 FY23 FY24 FY23 FY24 Gross margin improvement led by Driven by scale-based efficiency, Driven by higher BDE productivity increase in Ad-income sh
Slide 36: On the Path to Achieve Profitable Scale – covering significant ground in FY24
On the Path to Achieve Profitable Scale – covering significant ground in FY24 Average GMV per Month # Onboarded Retailers 9X 2.9X X X FY24 At Scale FY24 At Scale GMV doubled in FY24 vs FY23 Average Order Value # Orders 7.3X 1.2X X X FY24 At Scale FY24 At Scale At scale, EBITDA margin potential of ~3
Slide 37: Nysaa
Nysaa 36
Slide 38: Nysaa: Nykaa goes international with GCC
Nysaa: Nykaa goes international with GCC GCC Beauty market ready for a truly omnichannel experience $30 bn $500+ BPC per capita spend* BPC market size [Highest in the world] 40% ~40% Female Population Population under 25 yrs Source: Redseer, and World bank; estimates as of 2022 37 * BPC per capita e
Slide 39: Replicating our successful omnichannel playbook in GCC
Replicating our successful omnichannel playbook in GCC Launched Nysaa e-commerce Opened first Nysaa store in platform Dubai Jan-24 Mar-24 38
Slide 40: Partnering with globally renowned & unique standout brands
Partnering with globally renowned & unique standout brands * * * Brands onboarded * * * 171 * * Nysaa.com * * 51* * Nysaa stores * 39
Slide 41: Financial Performance
Financial Performance NAL
Slide 42: Strong growth in revenue while delivering margin expansion
Strong growth in revenue while delivering margin expansion All Values in Rs mn Revenue from Operations 28% 24% 63,856 51,438 13,017 16,680 Q4FY23 Q4FY24 FY23 FY24 EBITDA 5.4% 5.6% 5.0% 5.4% Margin Adj. EBITDA 5.5% 6.7% 5.2% 6.0% Margin % YoY Growth % Margin as % of Revenue from Operations 41 1. Adj.
Slide 43: Financial Summary
Financial Summary All Values in Rs mn Particulars Q4FY24 Q4FY23 YoY FY24 FY23 YoY Revenue from Operations 16,680 13,017 28% 63,856 51,438 24% Gross Profit 7,102 5,758 23% 27,392 22,781 20% Gross Margin 42.6% 44.2% -166 bps 42.9% 44.3% -139 bps EBITDA 933 707 32% 3,462 2,560 35% EBITDA Margin 5.6% 5.
Slide 44: Quarterly Vertical Performance: Business Wise
Quarterly Vertical Performance: Business Wise (All amounts in Rs mn, unless otherwise stated) Q4 FY24 Q4 FY23 Particulars BPC Fashion Others Total BPC Fashion Others Total GMV 21,197 8,422 2,554 32,172 16,289 6,641 1,524 24,454 Growth 30% 27% 68% 32% 29% 38% 170% 36% NSV 12,712 2,324 1,453 16,489 10
Slide 45: Full Year Vertical Performance: Business Wise
Full Year Vertical Performance: Business Wise (All amounts in Rs mn, unless otherwise stated) FY24 FY23 Particulars BPC Fashion Others Total BPC Fashion Others Total GMV 83,409 32,699 8,353 1,24,461 66,491 25,696 5,245 97,433 Growth 25% 27% 59% 28% 33% 47% 204% 41% NSV 49,499 9,376 4,679 63,554 40,7
Slide 46: Improving margin structures in growing businesses as One Nykaa diversifies
Improving margin structures in growing businesses as One Nykaa diversifies * Margin % to NSV BPC Contribution Margin %* Fashion Contribution Margin %* Others Contribution Margin %* 26.5% 25.5% FY22 FY23 FY24 4.9% 21.7% 2.8% -10.6% 2.2% -19.9% FY22 FY23 FY24 FY22 FY23 FY24 -31.8% Adj. EBITDA Margin %
Slide 47: Operating leverage below contribution margin level expanding profitability
Operating leverage below contribution margin level expanding profitability % As % of Net Revenue FY24 19.4% -8.8% -5.1% 5.4% 0.3% 0.2% 0.1% 6.0% Contribution Employee Other EBITDA ESOP New business Corporate Adj. EBITDA Margin Expenses Expenses Margin Expenses (GCC) restructuring Margin expenses -48
Slide 48: Peak investment behind us, leverage to kick in going forward
Peak investment behind us, leverage to kick in going forward % As % of Revenue FY24 5.4% -1.5% -2.4% -0.5% 1.1% FY24 EBITDA Depreciation FY24 PBT Lease Cost Net Interest Margin & Amortisation Margin cost +44 bps -21 bps +29 bps -19 bps +33 bps YoY YoY YoY YoY YoY Peak Capex investment of Rs 2,193 in
Slide 49: Investment in warehouse/office infra now in maturity, retail expansion to continue
Investment in warehouse/office infra now in maturity, retail expansion to continue Physical Stores Warehouse Office Space Physical Stores Area (Lacs Sq. ft.) Warehouse Capacity (Lacs Sq. ft.) Capacity (Lacs Sq. ft.) 18% 59% 43% 39% 5% 41% 78% 1% -19% 54% 68% 0% 1.7 14.6 14.7 1.9 1.9 1.4 1.0 8.2 1.1
Slide 50: Capex down significantly YoY
Capex down significantly YoY All Values in Rs mn -49% YoY 2500 2,235 2000 1500 -98% YoY -63% YoY +2% YoY +4% YoY -100% YoY 1,150 1000 661 481 498 500 393 401 405 295 244 5 0 0 Office Warehouse Retail Expansion * Tech Acquisition Total FY23 FY24 Particulars FY21 FY22 FY23 FY24 Capex (Rs mn) 724 2,050
Slide 51: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary All Values in Rs mn Balance Sheet FY24 FY23 Cash Flow FY24 FY23 Fixed Assets 6,979 7,297 EBITDA 3,462 2,560 Net Working Capital 10,499 9,033 Add: Non-Cash Items 337 278 Total Assets 17,478 16,330 Less: Payment of Lease rentals -1,479 -1,169 Cash EBITDA 2,320 1,670
Slide 52: Business Restructuring Initiatives
Business Restructuring Initiatives 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 of Nykaa Fashion Limited (a wholly own
Slide 53: Thank you
Thank you 52
Slide 54: 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 55: 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 56: Profit & Loss Statement
Profit & Loss Statement (All amounts in Rs mn, unless otherwise stated) Quarter Ended Year Ended Particulars Mar-24 Dec-23 Mar-23 QoQ Growth YoY Growth Mar-24 Mar-23 YoY Growth Revenue from Operations 16,680 17,888 13,017 -7% 28% 63,856 51,438 24% Cost of goods Sold 9,577 10,280 7,259 -7% 32% 36,464
Slide 57: Key Operational Metrics
Key Operational Metrics Particulars Unit Q4FY23 Q4FY24 YoY Visits BPC mn 231 286 24% Fashion mn 127 144 14% Others mn 11 17 51% MAUV BPC mn 22.5 28.9 28% Fashion mn 17.3 17.4 1% Others mn 1.8 3.0 67% Orders BPC mn 8.8 11.1 27% Fashion mn 1.4 1.7 20% Others mn 0.4 0.6 59% AOV BPC Rs 1,803 1,788 -1% F
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