Fsn E-commerce Ventures Ltd. · NSE:NYKAA
Fsn E-commerce Ventures — Q2 FY24 Earnings Presentation
57 slides from Fsn E-commerce Ventures's earnings presentation, Nov 6, 2023
Slide 1: Exchange filing cover letter
FSN E-Commerce Ventures Limited November 06, 2023 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Corporate Relationship Department, Plot No. C/1, G Block, 2nd Floor, New Trading Wing, Bandra – Kurla Complex, Rotunda Building, P.J. Towers, Bandra (E), Mumbai – 400 051
Slide 2: Investor Presentation Quarter ended September 30, 2023
Investor Presentation Quarter ended September 30, 2023 FSN E-Commerce Ventures Limited 1
Slide 3: Table of Contents
Table of Contents 1 Performance Highlights 2 Pioneer of India’s BPC Industry 3 Nykaa Fashion at an Inflection point 4 House of Brands 5 ESG 6 Financial Performance 2
Slide 4: Performance Highlights
Performance Highlights NKAA
Slide 5: Q2 FY24: Strong profitable growth
Q2 FY24: Strong profitable growth NSV Revenue from Operations Gross Profit Rs. 14,983 MM Rs. 15,070 MM Rs. 6,496 MM +24% YoY Growth +22% YoY Growth +16% YoY Growth Gross Margin* 43.1% (221 bps YoY) EBITDA PBT PAT** Rs. 806 MM Rs. 133 MM Rs. 78 MM +32% YoY Growth 51% YoY Growth 50% YoY Growth EBITDA
Slide 6: Strong growth across all verticals
Strong growth across all verticals BPC Fashion Others* GMV 23% GMV 27% GMV 54% 20,016 16,301 7,628 11,698 5,991 4,188 1,791 1,165 343 Q2FY22 Q2FY23 Q2FY24 Q2FY22 Q2FY23 Q2FY24 Q2FY22 Q2FY23 Q2FY24 2-Year CAGR 31% 2-Year CAGR 35% 2-Year CAGR 129% NSV 19% NSV 32% NSV 105% 11,675 9,815 2,321 7,115 1,75
Slide 7: Business diversification to serve a wider TAM
Business diversification to serve a wider TAM NSV Q2FY22 Q2FY23 Q2FY24 Others,* Others,* Others,* 1.2% 4.0% 6.6% Fashion, Fashion, 16.9% 14.5% Fashion, 15.5% Rs 8,688 MM Rs 12,049 MM Rs 14,983 MM BPC, BPC, BPC, 81.9% 81.5% 77.9% 6 * Others includes our new businesses NykaaMan, eB2B platform “SuperSt
Slide 8: BPC: Strong growth across key metrics
BPC: Strong growth across key metrics GMV (Rs MM) NSV (Rs MM) Existing Customers 31% CAGR 20,016 28% CAGR New Customers 16,301 21% 11,675 9,815 25% 11,698 7,115 29% 79% 75% 71% Q2FY22 Q2FY23 Q2FY24 Q2FY22 Q2FY23 Q2FY24 AUTC (MM) Orders (MM) 24% CAGR 28% CAGR 10.7 10.0 9.1 8.4 7.0 6.0 Q2FY22 Q2FY23 Q
Slide 9: Fashion: Improved revenue share from existing buyers
Fashion: Improved revenue share from existing buyers GMV (Rs MM) NSV (Rs MM) Existing Customers 35% CAGR 26% CAGR New Customers 7,628 2,321 5,991 1,753 54% 4,188 1,464 65% 87% 46% 35% 13% Q2FY22 Q2FY23 Q2FY24 Q2FY22 Q2FY23 Q2FY24 AUTC (MM) Orders (MM) 47% CAGR 36% CAGR 2.8 1.5 2.1 1.2 1.3 0.8 Q2FY22
Slide 10: eB2B: Significant progress on our path to profitability
eB2B: Significant progress on our path to profitability GMV (Rs MM) NSV (Rs MM) 1.7x 2.3x x x Q2FY23 Q2FY24 Q2FY23 Q2FY24 Transacting retailers (#) Orders (‘000) 73% YoY 62% YoY 1,29,431 280 74,604 173 Q2FY23 Q2FY24 Activation rate (as % of registered retailers) 65% 66% Q2FY23 Q2FY24 Serving retaile
Slide 11: BPC: Nykaa Pioneer of India's beauty industry
BPC: Nykaa Pioneer of India’s beauty industry 10
Slide 12: Nykaa playbook demonstrating leadership in beauty
Nykaa playbook demonstrating leadership in beauty Opportunity Our Focus What we have achieved.. 79%* Building beauty ecosystem through Revenue from existing customer education, experience, and events BPC organized taking share from unorganized market with online growing the fastest $80+* Annual spen
Slide 13: India's biggest beauty festival – Nykaaland 2023
India’s biggest beauty festival – Nykaaland 2023 80+ 800+ 5,000+ Brands Influencers, Content partcipation MUAs & KOLs generated New Launches Iconic cosmetic brand from LA Most renowned collection to exclusively at Nykaa India for the first time Masterclass session by 15,000+ Attendees Celebrities Ma
Slide 14: India's biggest beauty festival – Nykaaland 2023
India’s biggest beauty festival – Nykaaland 2023 13
Slide 15: India's biggest beauty festival – Nykaaland 2023
India’s biggest beauty festival – Nykaaland 2023 14
Slide 16: Industry first innovative approach to beauty focused flagship sale events
Industry first innovative approach to beauty focused flagship sale events 200K Users engaged with the gamification ~37% Omni-channel beauty GMV Y-O-Y growth 525 MM Reach through social media & Influencers Hourly flash 1st time ever sale offers Early access And exclusive offers on for Prive Gold & Pl
Slide 17: Strengthening omnichannel leadership
Strengthening omnichannel leadership ~8%* ~1.6L sq.ft.* Rs 3,249* Offline contribution to overall Total offline store space GMV/sq. ft./month BPC GMV [34% YoY growth] Store Count (#) 165 71** 121 83 65** Q2FY22 Q2FY23 Q2FY24 Launched 29** KIOSK 13 new stores * For Q2FY24 in Q2FY24 16 ** as of Septem
Slide 18: Bringing the best of new international & domestic brands
Bringing the best of new international & domestic brands for our customers 3,600+* Skincare favourites International & Domestic Brands Natasha Moor – Only on Nykaa Redken – biggest Uriage – International dermat haircare launch this year recommended bestseller Formula 10.0.6 Lamel Makeup Sugar Play N
Slide 19: Adding to the customer's journey with new properties across discovery funnel
Adding to the customer’s journey with new properties across the discovery funnel Curated collection of new New & Now @Nykaa Nykaa’s Next in Beauty Curating high potential launches from brands in the Beauty space beauty brands 18
Slide 20: Rebuilding our Nykaa Luxe store front
Rebuilding our Nykaa Luxe store front for a personalized shopping experience * as on September 30, 2023 Before After • Smaller brand imagery • Larger Imagery for enhanced • Limited availability to create branded storytelling video assets on the page • Improvement in UI • No Latest luxury trend funct
Slide 21: Curated offline experiences through events and masterclasses
Curated offline experiences through events and masterclasses Offline Events Session with the Caudalie Personalization and Gifting Founder and skin analyzer Activation in store Re-Launched in 2023, post covid 7 Beauty Bars across 7 cities Masterclasses and ~10,000 Guestlisted events Cumulative Regist
Slide 22: Destination for Korean beauty enthusiasts
Destination for Korean beauty enthusiasts Trending Dedicated K-beauty store K- beauty on-site content Korean beauty events Searches +148% KOREAN SUNSCREEN +61% GLASS SKIN +50% Growth in Top Korean brands 21
Slide 23: CSMS: Introducing India's daily skin care routine
CSMS: Introducing India’s daily skin care routine Understanding Collaboration with 4 Steps Skincare Customers 100+ Dermatologists for Indian Skin Customer Behaviour Surveyed across the country Given the lack of awareness on skin regimes, ● Indian consumers don’t follow a regime captured expert recom
Slide 24: CSMS: 360 awareness building for customer education
CSMS: 3600 awareness building for customer education 50+ 123 MM Brand Partners & KOL & Influencers Impressions Customer Adoption Approach 60%+ Nykaa customers shop skincare Omnichannel own platform ● KOL + dermatologists across age groups and demographics ● Conversations around Indian skin concerns
Slide 25: Nykaa Fashion at an inflection point
Nykaa Fashion at an inflection point 24
Slide 26: Nykaa Fashion playing in a niche, more premium segment
Nykaa Fashion playing in a niche, more premium segment Opportunity Our Focus What we have achieved.. 26%+* Customer Education and Inspiration Sale from new season collection India online premium fashion market sized at $2 Bn and expected to grow by 3.5x in 2030 46%* Strong focus on curated and diffe
Slide 27: Customer-first approach to discovery and assortment
Customer-first approach to discovery and assortment 150+ Brands* 250+ Brands* 3,000+* International & Domestic Brands Gen Z Store: Niche Home gown Labels Luxe Store: Curated and alluring collection of domestic and international luxury brands 11K+ Styles* 30K+ Styles* 26 * as of September 30, 2023 fo
Slide 28: Nykaa Fashion Hot Pink Sale
Nykaa Fashion Hot Pink Sale: Now amongst the country’s biggest fashion flagships Pre-Buzz engagement across channels Biggest flagship 18 MM+ ~9 MM 1.3% sale event for Order to visit Nykaa Fashion Visits Unique Visitors conversion 27
Slide 29: Becoming platform of choice for brands
Becoming platform of choice for brands Becoming Platform of Nykaa and Forever 21 have been working very choice for emerging closely to offer trendy and quirky fashion to Nykaa has always been a preferred platform for Forever Nykaa consumers. The intent shown by Nykaa in and popular brands promoting
Slide 30: Leading the way with scalable technology solutions
Leading the way with scalable technology solutions for customers AI generated User persona-based Hyper-personalized widgets recommendation personalization Indian wear Recommendations based on user’s preference of styles and categories Western wear Attribute recommendation Recommendations on Personal
Slide 31: Driving scalable and profitable growth
Driving scalable and profitable growth Order to Unique Contribution Margin NSV (Rs MM) Visitors Conversion %* (As % of NSV) 1.6x 2.9% 2,321 4.7% 2.3% 1,753 2.3% 1.7% 1,464 1.3% Q2FY22 Q2FY23 Q2FY24 Q2FY22 Q2FY23 Q2FY24 Q2FY22 Q2FY23 Q2FY24 30 * For NykaaFashion.com
Slide 32: Shaping the business to scale sustainably
Shaping the business to scale sustainably Pre-Delivery Leakages Marketing Expenses (as % of NSV) X 28.4% 25.7% 0.8x 24.9% Reduced pre-delivery leakages by almost 20% Marketing expenses improved by 348 bps YoY in Q2FY24 Q2FY22 Q2FY23 Q2FY24 Q2FY22 Q2FY23 Q2FY24 Premiumization – improved revenue Impro
Slide 33: Nykaa's House of Brands
Nykaa’s House of Brands FASHION 32
Slide 34: House of Brands: Consumer brands portfolio
House of Brands: Consumer brands portfolio 13 BPC owned brands 16 Fashion owned brands 29 owned brands 33
Slide 35: BPC House of Brands: Strong growth across channels
BPC House of Brands: Strong growth across channels GMV* of BPC owned brands (Rs MM) NSV* of BPC owned brands (Rs MM) 2,438 1,966 1,528 1,265 1,202 821 Q2FY22 Q2FY23 Q2FY24 Q2FY22 Q2FY23 Q2FY24 Contribution to BPC GMV 10.3% 12.1% 12.2% 11.5% 12.9% 13.1% Contribution to BPC NSV Q2FY24 GMV Channel Mix
Slide 36: Kay Beauty: India's much loved and awarded celebrity beauty brand
Kay Beauty: India’s much loved and awarded celebrity beauty brand ** as of September 30, 2023 India’s First Celebrity Beauty Brand in partnership with Katrina Kaif B R A N D A WA R D S GMV (Rs MM) Launched in Oct-20 GMV Contribution – Channel Wise (Q2FY24) 4x 1,500+ 1,279 ** 369 730 300 26% 53% Nyka
Slide 37: Fashion House of Brands: Strong growth across channels
Fashion House of Brands: Strong growth across channels GMV of Fashion owned brands (Rs MM) NSV of Fashion owned brands (Rs MM) 989 446 780 309 290 149 Q2FY22 Q2FY23 Q2FY24 Q2FY22 Q2FY23 Q2FY24 Contribution to Fashion GMV 6.9% 13.0% 13.0% 10.2% 17.6% 19.2% Contribution to Fashion NSV Q2FY24 GMV Chann
Slide 38: Creating a national brand Nykd
Creating a national brand “Nykd”, with strong consumer connect and innovation GMV (Rs MM) Q2FY24 GMV Channel Mix 230% CAGR 1,400+ Nykaa Fashion Other 3P Channels 850 320 41% 40 59% FY21 FY22 FY23 FY24 Annualized* Achieved the scale of Rs 1,000 MM+ in less than 3 years, which took other national bran
Slide 39: Creating a national brand Nykd, with strong consumer connect
Creating a national brand “Nykd”, with strong consumer connect and innovation Expanding offline presence Innovation and guided selling Bra Advisor Tool to help find the right bra size, fit and style 7 exclusive stores across 6 cities Awarded one of the most coveted award in Images Retail Forum for C
Slide 40: Environment, Social, and Governance
Environment, Social, and Governance 39
Slide 41: Strong relationship with the lifestyle ecosystem
Strong relationship with the lifestyle ecosystem Brand Partners Suppliers 6,700+ 7,000+ Influencers MSME Vendors 6,000+ 2,500+ Total employees** Registered Retailers (eB2B) 10,500+ Registered Nykaa Pro Users 1.9 Lakh * All figures as of September 30, 2023 ** includes on-roll and off-roll employees (
Slide 42: Shining the spotlight on ESG focused brands
Shining the spotlight on ESG focused brands * 140+ Brands * 650+ Brands Nykaa Beauty: Conscious at Nykaa Nykaa Fashion: The Responsible Collection 41 * as on September 30, 2023
Slide 43: Nykaa 10X10 Initiative
Nykaa 10x10: Moving towards a better planet Introduced Paperless Picking Nykaa 10X10 Initiative 323 tonnes* of plastic X recycled in FY23 * Increased order fulfillment 80% sustainable packaging capacity by improving picking process and achieved zero paper utilization for orders processed 42 * For FY
Slide 44: Nykaa Foundation: Our CSR arm focused on empowerment
Nykaa Foundation: Our CSR arm focused on empowerment Empowering future Transforming Lives Partnered with Labournet, helping marginalized young women become Nykaa Chair at IIM-Ahmedabad skilled beauty professionals Foundation Transforming Education Focus on Children’s health Partnered with Rangeet, t
Slide 45: Our Values - Sustainability, Inclusivity & Community
Our Values - Sustainability, Inclusivity & Community part of Nykaa’s identity 44
Slide 46: Diverse and inclusive workforce
Diverse and inclusive workforce Gender balanced organization 67% Committees chaired by women Female Male 54% 56% 59% 63% Nykaa leadership under age 40 46% 44% 41% Years of experience in Nykaa → < 1 year 1-2 years >= 4years 43% Women employees' workforce Young Organization Employees by age group 36%
Slide 47: Financial Performance
Financial Performance N YA
Slide 48: Driving profitable growth
Driving profitable growth All Values in Rs million % YoY Growth % Margin % to Revenue from Operations Revenue from Operations Gross Profit 45.3% 43.1% 22% 16% 15,070 12,308 6,496 5,577 Q2FY23 Q2FY24 Q2FY23 Q2FY24 EBITDA PBT 5.0% 5.4% 0.7% 0.9% 32% 51% 133 806 611 88 Q2FY23 Q2FY24 Q2FY23 Q2FY24 47
Slide 49: Profit & Loss Statement
Profit & Loss Statement (All amounts in ₹ million, unless otherwise stated) Quarter Ended Year Ended Particulars Sep-23 Sep-22 Jun-23 YoY Growth QoQ Growth Mar-23 Mar-22 YoY Growth Revenue from Operations 15,070 12,308 14,218 22% 6% 51,438 37,739 36% Cost of goods Sold 8,574 6,731 8,032 27% 7% 28,65
Slide 50: Q2 FY24: Improvement in operating profitability
Q2 FY24: Improvement in operating profitability Gross margin of Q2FY24 is in line with the long- term trend. It was impacted due to service 85 bps -25 bps 5.4% income for BPC vertical and increase in NSV 5.0% -221 bps 213 bps -27 bps 13 bps mix of eB2B: Superstore (others vertical) Fulfilment expens
Slide 51: Q2 FY24: Consistent retail expansion, deployment of working capital
Q2 FY24: Consistent retail expansion, deployment of working capital 5.4% -116 bps Depreciation and Amortisation increased YoY on -36 bps account of incremental capex investment in -211 bps FY23 in retail stores, warehouses and offices -89 bps -42 bps 46 bps 0.9% Interest - Financing increased YoY on
Slide 52: Vertical Performance: Business Wise
Vertical Performance: Business Wise (All amounts in ₹ million, unless otherwise stated) Q2 FY24 Q2 FY23 Particulars BPC Fashion Others Total BPC Fashion Others Total GMV 20,016 7,628 1,791 29,435 16,301 5,991 1,165 23,457 Growth 23% 27% 54% 25% 39% 43% 240% 45% NSV 11,675 2,321 986 14,983 9,815 1,75
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 Unique Transacting Customers Annual Transacting Customers
Slide 54: Thank you
Thank you 53
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: Key Operational Metrics
Key Operational Metrics Quarter Ended Quarter Ended Sep-23 Sep-23 Metric Unit Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 YoY QoQ growth growth Number of Visits Beauty and Personal Care Million 205 211 221 204 222 234 250 231 257 271 16% 5% Fashion Million 98 115 115 113 11
Slide 57: Vertical Performance: Business Wise
Vertical Performance: Business Wise (All amounts in ₹ million, unless otherwise stated) H1 FY24 H1 FY23 Particulars BPC Fashion Others Total BPC Fashion Others Total GMV 38,524 14,165 3,424 56,114 31,189 11,811 2,015 45,014 Growth 24% 20% 70% 25% 39% 50% 197% 46% NSV 22,974 4,299 1,916 29,189 19,014
FSN E-Commerce Ventures — Q2 FY24 Earnings Presentation on 6ix