The following is a summary of the Yatsen Holding Limited (YSG) Q4 2023 Earnings Call Transcript:
Financial Performance:
Yatsen's fourth quarter net revenue grew by 6.7% year-over-year.
Skincare brands saw net revenue growth of 17.6% YoY, while Color Cosmetic brands saw a slight dip of 1.8% YoY.
The company's gross margin improved to 73.7% in Q4, driven by high margin products and disciplined pricing.
However, a larger net loss margin of 46.1% for Q4 was reported, due to major brand investments and goodwill impairment.
Non-GAAP net loss margin showed signs of improvement for 2023, shrinking to 8.7% from 12.2% YoY.
Cash, restricted cash and short-term investments as of December 31, 2023, were RMB 2.08 billion, down from RMB 2.63 billion as of December 31, 2022.
Business Progress:
Yatsen's Clinical and Premium Skincare brands showed robust performance; Color Cosmetics brands Little Ondine and Pink Bear recorded YoY revenue growth despite slight decline within the category.
Perfect Diary brand's repositioning process, with a focus on the lipstick category, received a positive customer response.
R&D expenses accounted for 3.4% of total revenues for Q4 2023, signifying a strong focus on innovation.
Significant advancements in R&D capabilities were made, with key product launches and research collaborations.
The company has been recognized for its commitment to inclusion and employee welfare at the China's 2023 DEI Employer Awards.
Q1 2024 total net revenues are expected to be between RMB 765.4 million and RMB 803.7 million, marking a potential YoY increase of up to 5%.
The company is preparing for larger shopping festivals and expects the contribution of new product, Biolip Essence Lipstick, in Perfect Diary brand to increase in the current year.
More details: Yatsen IR
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