Yatsen Achieves Profit for Two Consecutive Quarters After Going Public
- Chaileedo Press
- May 18, 2023
- 2 min read
Updated: Jun 5, 2023
Yatsen has published its financial results for Q1 2023, revealing net revenue of 765 million yuan ($109.31 million) and a net profit of 50.7 million yuan ($7.24 million). This is the second quarter in a row that the company has achieved profitability after going public.
Yatsen released its financial report for the first quarter of 2023. During the reporting period, Yatsen's net revenue reached 765 million yuan ($109.31 million), with a net profit of 50.7 million yuan ($7.24 million). This marks the second consecutive quarter of profitability after going public.
In addition, the financial report showed that Yatsen's skincare business achieved net revenue of 245 million yuan ($35.01 million), an increase of 34.2% year-on-year. As a result, this segment has maintained a level of over 30% of total net revenue for four consecutive quarters.
It is worth mentioning that in the fourth quarter of 2022, Yatsen achieved a net revenue of 1.01 billion yuan ($144.31 million), with a non-GAAP net profit of 34.68 million yuan ($4.96 million) and a net profit margin of 3.4%, marking its first profitable quarter since going public.
Not only did net profit increase, but the company's gross profit margin also improved significantly during the same period. The financial report showed that in the first quarter of 2023, Yatsen's gross profit margin was 74.3%, up 5.3% year-on-year.
On the other hand, the company's cost control strategy has achieved significant results. For example, in operating expenses, in the first quarter of 2023, Yatsen's total operating expenses decreased from 920 million yuan ($131.45 million) in the same period last year to 580 million ($82.87 million), a year-on-year decrease of 36.7%. At the same time, Yatsen's operating losses continued to narrow, falling from 308 million yuan ($44.01 million) in the same period last year to 7.15 million yuan($1.02 million).
Focusing on the quarterly financial report, the skincare business has become the focus of Yatsen's strategic transformation and has become the company's second growth curve.
During the reporting period, Yatsen's skincare business achieved net revenue of 245 million yuan ($35.01 million), a year-on-year increase of 34.2%, maintaining a level of over 30% of total net revenue for four consecutive quarters. Among them, the combined net revenue of the high-end skincare brand Galenic, the functional skincare brand DR.WU, and the luxury skincare brand EVE LOM grew by 59% year-on-year in the first quarter.
To boost the development of the skincare business, the company accelerated the research and development of new products in the first quarter, empowering the competitiveness of each brand's products. For example, during this year's "38" festival, EVE LOM successfully launched the Renewal Treatment Oil, holding new product launch events in London, New York, and Miami. It is reported that the product is currently exclusively available for offline use in China. In addition, DR.WU has launched the DR.WU Acne Research Fund to help the brand continue to penetrate the acne market.
Comments