Yatsen Holdings Ltd, the C-Beauty conglomerate best known for its flagship Perfect Diary brand, reported a 42.7% year-on-year increase in net revenue for the first quarter of 2021 to 1.44 billion yuan (220 .5 million dollars).
Gross profit rose 58.8% in the first quarter, compared to the same period a year earlier, but operating expenses also increased to 92.4% of total net income, from 79.1 % for the first quarter of 2020. Losses also widened compared to a year ago. , with a net loss of 319.0 million yuan ($48.7 million) in the first quarter of 2021, compared to 191.7 million yuan ($29.77 million) in the first quarter of 2020.
Huang Jinfeng, Founder, Chairman and CEO of Yatsen, highlighted newly acquired brands Eve Lom and Dr. Wu (Yatsen acquired the latter’s Chinese operations this quarter), as well as newly launched mass-market brand Pink. Bear, as key pillars of a brand portfolio expansion strategy that he expects will continue for some time to come.
“Building on our momentum in the first quarter, we will continue to leverage our current unique window of opportunity to identify valuable brands and businesses to further enrich our portfolio and invest in research capabilities and development and infrastructure essential to maintaining our long-term competitive advantage,” said Huang.
Looking ahead, the company said it expects its total net revenue for the second quarter to be between 1.49 billion yuan ($231.39 million) and 1.54 billion yuan. ($239.15 million), representing an annual growth rate of approximately 50-55%. .