Eve Lom's parent company sees “difficult year” as FY22 revenues drop
Chinese beauty giant Yatsen Holding Limited, the owners of Eve Lom, today published its financial results for the fourth quarter and full year ending 31 December 2022, revealing full-year net revenues decreased by 36.5% to £454.6 million.
Founded in 2016, the company has launched and acquired multiple cosmetics and skincare brands including Perfect Diary, Little Ondine, Abby's Choice, Galénic, DR.WU, Eve Lom, and Pink Bear.
Yatsen acquired Eve Lom in 2021, entering a definitive agreement with Manzanita Capital. Manzanita still retaisn a minority stake in the business and serves as a strategic partner. Founded in 1985 by the renowned facialist Eve Lom, the brand's eponymous skincare collection is centred on the belief that the secret to radiant skin begins with the perfect cleanse.
During Q4, net revenues decreased by 34.2% to £123.37 million (US$145.8 million). Total net revenues from skincare brands during the period increased by 42.4% to £57.9 million (US$68.4 million).
Net revenues from skincare brands during the fourth quarter increased to 46.9% from 21.7% the year prior. Gross margin stood at 71.1%, as compared with 65% for the prior year. Net loss during Q4 decreased by 88.4% to £6.7 million (US$8 million).
Full year 2022 results reveal total net revenues decreased by 36.5% year-on-year to £454.6 million (US$537.3 million). Total net revenues from skincare brands for the full year of 2022 increased to 33.5% from 14.6% the year prior.
Despite disappointing revenues, the company's gross margin for 2022 increased to 68%, compared to 66.8% for the year prior period. Net loss for the full year decreased by 46.9% to £100.7 million (US$119.1 million).
Mr. Jinfeng Huang, Founder, Chairman and Chief Executive Officer of Yatsen, commented: "2022 was a difficult year for the beauty industry and the overall consumer industry in China. Despite the year's challenges, our strategic transformation plan proved effective, playing out in line with our expectations. Specifically, as we accomplished major milestones in growing our Skincare Brands, we also improved profitability.
"While building a more sustainable business, we continued to invest in brand equity and R&D, two essential competitive advantages that will ensure our market-leading position for the long term. Looking ahead to 2023, we will continue executing our new five-year strategic plan with a focus on building a healthy brand portfolio and capitalising on rising opportunities as the consumer industry recovers."