Indian beauty products retailer Nykaa's profit surges on demand for premium products
Indian beauty products retailer
Nykaa
, on Friday, posted a fourth-quarter profit that nearly tripled year on year as premium brands continued to attract
urban consumers
.
The company, listed as
FSN E-Commerce Ventures
, said its consolidated net profit rose to 202.8 million rupees ($2.4 million) in the quarter, from 69.3 million rupees a year ago.
Nykaa's total revenue, over 92% of which comes from its beauty products, jumped nearly 24% to 20.62 billion rupees.
Sales of beauty products, including from international brands such as Estee Lauder and singer Rihanna's
Fenty Beauty
, increased 25% to 18.95 billion.
The premium segment in India's $28 billion beauty and personal care industry has defied a broader slowdown in urban consumption as upper middle class and richer consumers continued to splurge on discretionary items.
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Higher sales of premium products helped Nykaa's gross margins expand by 151 basis points to 44.1% in the quarter.
The company's net profit also got a boost from total expenses rising 23%, less than total revenue growth, to 20.31 billion rupees.
Revenue from Nykaa's fashion apparel business climbed 11% to 1.61 billion rupees in the quarter.
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