Yatsen Holding Limited (“Yatsen”) announced its unaudited financial results for the fourth quarter and full year ended December 31, 2023.
In the fourth quarter of 2023, total net revenues rose by 6.7% to RMB1.07 billion (US$151.1 million) from RMB1.01 billion in the same period of the previous year. This growth was mainly driven by a 17.6% year-on-year increase in net revenues from Skincare Brands, partly offset by a 1.8% year-on-year decline in net revenues from Color Cosmetics Brands.
The operating loss for the fourth quarter of 2023 amounted to RMB539.6 million (US$76.0 million), compared to RMB78.2 million in the same period of the previous year. The operating loss margin stood at 50.3%, contrasting with 7.8% in the prior year period.
Net loss for the fourth quarter of 2023 was RMB494.5 million (US$69.7 million), as compared with RMB55.0 million for the prior year period.
Total net revenues for the entire year of 2023 dropped by 7.9% to RMB3.41 billion (US$481.0 million) from RMB3.71 billion in the previous year, mainly due to a decrease in net revenues from Color Cosmetics Brands, partially offset by an increase in net revenues from Skincare Brands.
Gross profit for the full year of 2023 decreased slightly by 0.2% to RMB2.51 billion (US$354.0 million) from RMB2.52 billion for the prior year period. The loss from operations for the full year of 2023 was RMB913.4 million (US$128.6 million), compared to RMB928.9 million in the previous year.
The net loss for the entire year of 2023 amounted to RMB750.2 million (US$105.7 million), compared to RMB821.3 million in the previous year. The net loss attributable to Yatsen’s ordinary shareholders per diluted ADS for the full year of 2023 was RMB1.36 (US$0.19), slightly lower than RMB1.37 in the prior year period.
Mr. Jinfeng Huang, Founder, Chairman, and Chief Executive Officer of Yatsen, stated, “We were pleased to return to a growth trajectory in the fourth quarter of 2023 as we made further progress on our strategic transformation plan. Driven by solid performances from Galénic, DR.WU and Eve Lom, revenues from our Skincare Brands increased by 17.6% and 11.4% year over year for the fourth quarter and the full year of 2023, respectively. Perfect Diary’s brand repositioning also continued to gain traction. Propelled by the success of the brand’s new hero product, Biolip Essence Lipstick, Perfect Diary rose to second place in the lipstick category in terms of retail sales value on Tmall and Douyin combined for December 2023. Looking ahead, we will remain focused on pursuing sustainable growth with ongoing innovation across our brands.”
