The Omnichannel beauty retailer Sugar Cosmetics has marked a spike of around 89 per cent year-on-year. It recorded Rs 420.2 Cr for FY23 (Fiscal Year 2023).
Company doubles the revenue from previous FY
Though the company is recovering from a flat net loss of Rs 76.2 Cr., its overall expenses increased by 68 per cent to Rs 505 Cr. This can be contributed mainly due to the increased expenditure on the stock-in-trade.
The beauty brand has almost doubled its revenue from operations from Rs 222 Cr in FY22 to 420 Cr in FY23, as per the Register of Companies.
Areas that consume cost and expenses
It is very likely that among its other expenses, advertising and promotion related costs remain a major factor, holding accountability of 32 per cent of average expenditure. In recent times, the D2C brand has boarded Ranveer Singh and Tamanna Bhatia as their brand ambassadors. This helps to gain a spike of 67% in Rs 162 Cr in FY23. There is no doubt that Sugar earns its revenue mostly selling cosmetics and beauty products.
Other key areas that can be attributed to spending include increased promotional spends of Rs 162.5 crore from Rs 97.5 crore, Employee benefits expenses, which went up to Rs 60.8 Cr from Rs 35.5 crore in FY22. Additionally, Rent, legal, professional ,outsourced support services account for a Suge of Rs 505Cr in FY 23 as compared to Rs 300 Cr in FY22.
Apart from its exponential growth , the company keeps an eye for its loss in check. Its ROCE , IBITDA score saw improvement of -29% and -14% respectively.
About the SUGAR Cosmetics venture
Founded in 2015 by Vineeta Singh and Kaushik Mukherjee , SUGAR Cosmetics roped up its journey as a D2C brand initially with an online platform. Later, it developed into an omnichannel model and now expanded to have more than 40,000 retail outlets across over 550 cities in India. The company offers products in the lips, eyes, face, nails and skin categories. It sells through online platforms like Amazon, Nykaa, Flipkart , Myntra.
SUGAR Cosmetics earned fundraising of around $85 million from several funding rounds. The beauty startup was valued at around $500 Mn and targeted to raise another $100 Mn at around $700 Mn valuation. SUGAR faces competitors like Wow skincare, whose sale plummets in FY23, Plum, MamaEarth and Nykaa among other companies.
