Fsn E-commerce Ventures Ltd. · NSE:NYKAA
Fsn E-commerce Ventures — Q3 FY24 Earnings Presentation
42 slides from Fsn E-commerce Ventures's earnings presentation, Feb 6, 2024
Slide 1: FSN E-Commerce Ventures Limited – Investor Presentation Intimation
FSN E-Commerce Ventures Limited February 06, 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 nine months ended December 31, 2023, to be used by the Comp
Slide 2: Investor Presentation Quarter ended December 31, 2023
Investor Presentation Quarter ended December 31, 2023 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 Financial Performance 2
Slide 4: Performance Highlights
Performance Highlights NKAR
Slide 5: Q3 FY24: Driving profitable growth
Q3 FY24: Driving profitable growth GMV NSV Rs. 36,194 MM Rs. 17,866 MM +29% YoY Growth +24% YoY Growth Revenue from Operations Gross Profit Rs. 17,888 MM Rs. 7,607 MM +22% YoY Growth +20% YoY Growth Gross Margin* 42.5% (86 bps YoY) EBITDA PBT PAT** Rs. 988 MM Rs. 265 MM Rs. 175 MM +26% YoY Growth 1
Slide 6: Delivering growth across all our verticals
Delivering growth across all our verticals BPC Fashion Others* GMV 25% GMV 40% GMV 39% 23,697 68% 19,014 10,125 15,105 7,244 2,373 4,841 1,707 483 Q3FY22 Q3FY23 Q3FY24 Q3FY22 Q3FY23 Q3FY24 Q3FY22 Q3FY23 Q3FY24 2-Year CAGR 25% 2-Year CAGR 45% 2-Year CAGR 122% NSV 20% NSV 31% NSV 67% 13,805 88% 11,513
Slide 7: Business diversification to serve a wider TAM
Business diversification to serve a wider TAM NSV Opportunity [2027] Overall BPC - $ 31 Bn Q3FY22 Q3FY23 Q3FY24 $ 10 Bn Online BPC Others, 7% Others, 5% Fashion, $ 9 Bn KIOSK 15% Organized Offline BPC Others, 1% Fashion Fashion, , 15% 14% $ 12 Bn Unorganized offline BPC BPC, 78% BPC, 80% BPC, 85% Ov
Slide 8: Beauty
Beauty 7
Slide 9: BPC: Strong growth across key metrics
BPC: Strong growth across key metrics GMV (Rs MM) NSV (Rs MM) Existing Customers 25% CAGR 23,697 23% CAGR New Customers 13,805 19,014 22% 11,513 15,105 24% 9,102 26% 78% 76% 74% Q3FY22 Q3FY23 Q3FY24 Q3FY22 Q3FY23 Q3FY24 AUTC (MM) Orders (MM) 21% CAGR 21% CAGR 11.1 11.1 9.6 9.5 7.5 7.5 Q3FY22 Q3FY23
Slide 10: Nykaaland 2023: India's Biggest Beauty Festival
Nykaaland 2023: India’s Biggest Beauty Festival Overwhelming response from brands and customers alike 80+ 15,000+ Global & local Attendees brands 12 Masterclasses 5,000 Packed participants Audience Celebrity makeup artist Mario Dedivanovic in India 1st time Baltasar Gonzalez Pinel, Daniel Bauer, Nam
Slide 11: Nykaa continues to lead the premiumization of BPC consumption in India
Nykaa continues to lead the premiumization of BPC consumption in India New exclusive launches in premium category (Q3FY24) Dr. Barbara Strum – Germany based renowned Skincare brand Marketing Customer GTM Nykaa co-create Service brand’s India strategy CeraVe - US based Urban Decay - Iconic Colourpop
Slide 12: Retail Stores: Critical for premium beauty omnichannel strategy
Retail Stores: Critical for premium beauty omnichannel strategy Store Count (#) 174 64 135 cities 95 ~1.7 lakh sq ft retail space Q3FY22 Q3FY23 Q3FY24 Strong improvement in profitability 9% 35% YoY Contribution to overall KIOSK BPC GMV EBITDA 33 Nykaa stores a destination for premium beauty brands 1
Slide 13: Nykaa "Pink Friday" Sale, getting bigger every year
Nykaa “Pink Friday” Sale, getting bigger every year 1/3rd GMV from premium brands KIOSK 32% YoY Premium category GMV vs PF’22 67% YoY Offline sales growth vs PF’22 2018 2023 KIOSK 29% jump in order conversion during sale event 120%+ YoY Women western wear GMV vs PF’22 400 MM+ 50 MM Social and media
Slide 14: Fashion
Fashion FASHION
Slide 15: Fashion: Strong growth across all metrics
Fashion: Strong growth across all metrics GMV (Rs MM) NSV (Rs MM) Existing Customers 45% CAGR 35% CAGR New Customers 10,125 2,752 7,244 2,100 51% 4,841 1,500 62% 81% 49% 38% 19% Q3FY22 Q3FY23 Q3FY24 Q3FY22 Q3FY23 Q3FY24 AUTC (MM) Orders (MM) 36% CAGR 25% CAGR 2.9 2.0 2.4 1.7 1.3 1.6 Q3FY22 Q3FY23 Q3
Slide 16: Consistent improvement in key metrics
Consistent improvement in key metrics Order to Unique Visitor Conversion* Marketing expenses (As % of NSV) Contribution margin (As % of NSV) 3.2% 2.9% 2.5% 28.6% 2.3% 2.3% 6.0% 27.9% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 4.7% 27.3% Improved revenue share from existing customers 2.6% 2.7% GMV Contributi
Slide 17: Foot Locker Inc. – Originator and Leader in Sneaker Culture
Foot Locker Inc. – Originator and Leader in Sneaker Culture Fortune 500 2,600 26+ 45,000+ $ 8 Billion Company Stores Countries Employees Revenue (2022) Popular multi-brand footwear specialty retailer from US Sneaker Culture Positioning, Purpose led & Community proposition Top brands include Nike, Jo
Slide 18: Exploding Sneaker culture in India
Exploding Sneaker culture in India Google search trends for sneakers in India India Market Opportunity ($ Bn) ~5x ~10% CAGR 4.5 2.6 2.1 1.6 2022 2027E Athletic Sneaker For young Indians across cities, sneakers are a way of self-expression Rise in fitness culture Sneakers have a cultural connotation
Slide 19: Big Win: Foot Locker x Nykaa Fashion - Exclusive Online Partnership
Big Win: Foot Locker x Nykaa Fashion - Exclusive Online Partnership x Nykaa Fashion will serve as the exclusive e-commerce partner Plan to launch Foot Locker's India website and Foot Locker Shop-in-Shop on Nykaa x Offering will include Footwear, Apparel, and Accessories Strengthens Nykaa’s position
Slide 20: Nykaa's House of Brands
Nykaa’s House of Brands FASHION 19
Slide 21: House of Brands: Consumer brands portfolio
House of Brands: Consumer brands portfolio 13 BPC owned brands 14 Fashion owned brands 27 owned brands 5 brands crossed Rs 1,000 MM GMV* 20 * Annualized run rate based on Q3FY24 GMV
Slide 22: Beauty House of Brands: Strong growth across channels
Beauty House of Brands: Strong growth across channels GMV* of BPC owned brands (Rs MM) NSV* of BPC owned brands (Rs MM) 40% YoY 36% YoY 34% CAGR 3,152 32% CAGR 1,943 2,247 1,746 1,425 1,115 Q3FY22 Q3FY23 Q3FY24 Q3FY22 Q3FY23 Q3FY24 Contribution to BPC GMV 11.8% 11.5% 13.3% 12.2% 12.4% 14.1% Contribu
Slide 23: Fashion House of Brands: Expanding presence across multi channels
Fashion House of Brands: Expanding presence across multi channels GMV of Fashion owned brands (Rs MM) NSV of Fashion owned brands (Rs MM) 29% YoY 23% YoY 69% CAGR 1,165 57% CAGR 464 901 376 406 187 Q3FY22 Q3FY23 Q3FY24 Q3FY22 Q3FY23 Q3FY24 Contribution to Fashion GMV 8.4% 12.4% 11.5% 12.5% 17.9% 16.
Slide 24: eB2B: Superstore by Nykaa
SUPER eB2B: Superstore by Nykaa STORE
Slide 25: eB2B: Scaled exponentially within 2 years of launch
eB2B: Scaled exponentially within 2 years of launch GMV (Rs MM) NSV (Rs MM) Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Transacting retailers (‘000) Orders (‘000) 337 146 264 280 129 236 120 216 109 96 173 75 45 104 19
Slide 26: Scaling with improving profitability
Scaling with improving profitability 13% YoY AOV growth – improving AOV with increasing share from premium brands 68% YoY GMV X Packaging cost/ order 0.5X 580 bps Improvement in X Fulfilment expense Q3FY23 Q3FY24 0.6X Pre-Delivery Leakages 766 bps Q3FY23 Q3FY24 contribution margin expansion 1.2X X 4
Slide 27: Driven by Better Service through Warehouses closer to the Customers
Driven by Better Service through Warehouses closer to the Customers Regionalization of warehouse to get closer to customer and create better experience Punjab 13 Tauru Lucknow Warehouses Assam Patna Ahmedabad Kolkata Cuttack 2.5 Lacs sq.ft Mumbai Warehouse capacity Hyderabad Nagpur Chennai Existing
Slide 28: Financial Performance
Financial Performance NIA 27
Slide 29: Driving profitable growth
Driving profitable growth All Values in Rs million % YoY Growth % Margin % to Revenue from Operations Revenue from Operations Gross Profit 22% 23% 43.4% 42.5% 44.3% 43.0% 47,176 20% 19% 38,421 20,290 17,023 17,888 14,628 7,607 6,347 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 EBITDA PBT
Slide 30: Profit & Loss Statement
Profit & Loss Statement (All amounts in ₹ million, unless otherwise stated) Quarter Ended Year Ended Particulars Dec-23 Dec-22 Sep-23 YoY Growth QoQ Growth YTD Dec-23 YTD Dec-22 YoY Growth Revenue from Operations 17,888 14,628 15,070 22% 19% 47,176 38,421 23% Cost of goods Sold 10,280 8,282 8,574 24
Slide 31: Vertical Performance: Business Wise
Vertical Performance: Business Wise (All amounts in ₹ million, unless otherwise stated) Q3 FY24 Q3 FY23 Particulars BPC Fashion Others Total BPC Fashion Others Total GMV 23,697 10,125 2,373 36,194 19,014 7,244 1,707 27,965 Growth 25% 40% 39% 29% 26% 50% 254% 37% NSV 13,805 2,752 1,309 17,866 11,513
Slide 32: Improving profitability across businesses
Improving profitability across businesses * Margin % to NSV BPC Contribution Margin %* Fashion Contribution Margin %* Others Contribution Margin %* 26.5% 25.5% 4.6% FY22 FY23 9MFY24 21.7% 2.8% 2.2% -11.5% -19.9% FY22 FY23 9MFY24 FY22 FY23 9MFY24 -31.8% Consolidated EBITDA Margin % NSV contribution b
Slide 33: Q3 FY24: Operating leverage below contribution to drive profitability
Q3 FY24: Operating leverage below contribution to drive profitability All Values in Rs million Employee Expense (As % of Net Revenue) % As % of Net Revenue Q3FY24 Ahead of the curve investment in fashion and new businesses 9.6% 18.4% -8.3% 48 bps YoY 8.7% improvement -4.6% 8.3% 5.5% 0.4% 0.2% 6.1% F
Slide 34: Q3 FY24: Improvement across fulfilment and employee expenses
Q3 FY24: Improvement across fulfilment and employee expenses Regionalization strategy (reduced air shipment ratio & freight cost per order) and Optimization is G&A Launch of Scale efficiencies Higher improved warehouse productivity expenses operation in ESOP cost GCC 41 bps 19 bps 114 bps -46 bps 42
Slide 35: Q3 FY24: Margin expansion at PBT level
Q3 FY24: Margin expansion at PBT level 44 bps YoY improvement Depreciation & Amortisation Lease Cost 22 bps YoY 65 bps YoY 2.8% EBITDA Margin expansion of 18 bps 1.4% 2.1% PBT Margin expansion of 62 bps 1.2% 1.5% 5.5% Q3FY23 Q3FY24 Q3FY23 Q3FY24 5.3% Rs 248 MM in Q3FY24 (45% YoY) Lease cost: Rs 3
Slide 36: Other Announcements
Other Announcements ❑ Further investment by the Company in Nykaa Fashion Limited by way of rights issue: FSN E-Commerce Ventures Limited is infusing additional equity into Nykaa Fashion Limited to be utilised for repayment of loans given by the Company. ❑ Acquisition of Lingerie & Athleisure busines
Slide 37: Thank you
Thank you 36
Slide 38: 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 39: 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 40: Key Operational Metrics
Key Operational Metrics Quarter Ended Quarter Ended Dec-23 Dec-23 Metric Unit Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 YoY QoQ growth growth Number of Visits Beauty and Personal Care Million 211 221 204 222 234 250 231 257 271 295 18% 9% Fashion Million 115 115 113 118 1
Slide 41: Financials KPI
Financials KPI Quarter Ended Quarter Ended Dec-23 Dec-23 Metric Unit Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 YoY QoQ growth growth NSV ₹ in Million 8,668 10,729 9,650 11,272 12,049 14,400 12,904 14,206 14,983 17,836 24% 19% Beauty and Personal Care ₹ in Million 7,115 9,
Slide 42: Vertical Performance: Business Wise
Vertical Performance: Business Wise (All amounts in ₹ million, unless otherwise stated) 9M FY24 9M FY23 Particulars BPC Fashion Others Total BPC Fashion Others Total GMV 62,214 24,293 5,797 92,304 50,203 19,055 3,721 72,979 Growth 24% 27% 56% 26% 34% 50% 220% 42% NSV 36,778 7,052 3,226 47,056 30,527
FSN E-Commerce Ventures — Q3 FY24 Earnings Presentation on 6ix