SUGAR Cosmetics’ FY22 Loss Jumps 255% To INR 75 Cr As Expenses Double!

SUGAR Cosmetics’ FY22 Loss Jumps 255% To INR 75 Cr As Expenses Double

• The beauty ecommerce business had reduced its deficit year over year to INR 21.1 Cr in FY21.

• Total expenses for SUGAR Cosmetics grew to INR 298.1 Cr, driven by a 2.8X rise in advertising and promotional costs to INR 96.6 Cr.

• Operating sales for SUGAR Cosmetic increased by 75% to INR 221.1 Cr in FY22.

Despite an increase in revenue, Vellvette Lifestyle's digital-first beauty ecommerce brand SUGAR Cosmetics reported an increase in its loss to INR 75 Cr in the financial year 2021-2022 (FY22) from INR 21.1 Cr the previous fiscal year.

SUGAR Cosmetics was successful in reducing its deficit year over year (YoY) in FY21. However, a large increase in expenses, particularly in advertising and marketing, prevented it from maintaining the momentum.

Although its operating revenue from the sale of its cosmetic and aesthetic goods increased by about 75% to INR 221.1 Cr in FY22, the company nonetheless reported a 255% YoY increase in its loss. The amount was 126.4 Cr INR in FY21.

The 2015-founded firm provides a selection of cosmetics, skincare, and other beauty products. After first operating largely as a direct-to-consumer firm, SUGAR Cosmetics switched to an omnichannel approach in 2017. Under the direction of Vineeta Singh and Kaushik Mukherjee, SUGAR Cosmetics has worked with a number of retailers nationwide and established over 45K retail locations in India. Additionally, it sells its goods on online stores including Amazon, Flipkart, and Nykaa.

The startup has a presence abroad, although it derives the majority of its income from India.

In FY22, SUGAR Cosmetics produced operating income from India totaling INR 210.9 Cr as opposed to INR 117.6 Cr in FY21. Over 95% of their overall operating revenue came from India.

The rest of the world, on the other hand, increased its overall operating revenue in FY22 by over 16% YoY, or INR 10.2 Cr. 2019 saw SUGAR Cosmetics' offline presence in Russia grow. In the US, the brand is also present online.

Source:- https://inc42.com/buzz/sugar-cosmetics-fy22-loss-jumps-255-percent-to-inr-75-cr-as-expenses-double/