Indian beauty and personal care retailer Nykaa saw a significant 72% increase in its second-quarter profit, bolstered by strong demand within its core beauty segment.
The company’s beauty division, which includes prestigious brands such as Estée Lauder and Bobbi Brown, exceeded expectations with a 24% revenue boost. This growth is aligned with the rapid expansion of India’s US$28 billion beauty market, which is projected to reach US$45 billion by 2030. Nykaa’s gross merchandise value (GMV) climbed by 29%, reaching 36.53 billion rupees. In contrast, its fashion segment saw slower GMV growth of 10%, reflecting broader market challenges, including high inflation.
Despite escalating advertising and marketing expenses, Nykaa managed to maintain steady EBITDA margins of 5.5%. The retailer’s strong performance highlights the rising demand for beauty products, particularly during India’s festive season, as the country’s middle class continues to grow.
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