#China #Guangzhou #Yatsen #beauty group #Skincare Brands

Yatsen Holding Limited Reports First Quarter 2025 Financial Results

On May 16, 2025, Yatsen Holding Limited, a prominent beauty conglomerate based in China, released its unaudited financial results for the first quarter that ended on March 31, 2025. The results highlight a noteworthy progress in the company’s revenue and its strategic initiatives in the beauty market.

Financial Highlights

Yatsen reported a total net revenue of RMB 833.5 million (approximately US$ 114.9 million) for the first quarter of 2025, marking an increase of 7.8% when compared to RMB 773.4 million from the same period last year. This growth is significant, especially considering the steady demand in the beauty market. A remarkable contributor to this increase was Yatsen’s skincare brands, which saw a dramatic 47.7% rise in revenue, amounting to RMB 362.4 million (US$ 49.9 million).

Despite various market challenges, the skincare segment accounted for 43.5% of total revenues, a significant jump from 31.7% the previous year. Yatsen’s renowned brands such as Galénic, DR.WU, and Eve Lom collectively displayed robust performance, achieving a combined revenue growth of 58%. The gross profit for the quarter also saw an upward trend, rising to 79.1% from 77.7% in the previous year.

Cost Management and Operating Expenses

Yatsen has effectively reduced its operating expenses by 8.6% to RMB 693.2 million (US$ 95.5 million), which now constitutes 83.2% of total revenues, down from 98.1% year-on-year. Fulfillment expenses slightly increased to RMB 51.8 million (US$ 7.1 million), while strategically implemented selling and marketing expenditures resulted in a reduction percentage from 69.7% to 66.4%. General and administrative expenses were significantly reduced to RMB 64.9 million (US$ 8.9 million), down from RMB 140.1 million the previous year, showcasing Yatsen's commitment to efficiency and prudent financial management.

Financial Loss and Outlook

Although Yatsen reported a narrowed net loss of RMB 5.6 million (US$ 0.8 million), a substantial improvement from RMB 124.9 million last year, it also achieved a non-GAAP net income of RMB 7.1 million (US$ 1.0 million). According to Mr. Jinfeng Huang, Founder and CEO of Yatsen, this shift indicates a solid foundational growth, aligning well with the company's strategic plans for sustainable expansion.

Moving forward, Yatsen anticipates Q2 2025 revenues to be in the range of RMB 810.4 million to RMB 889.9 million, which reflects a targeted year-on-year growth of 2% to 12%. This forecast stems from current insights into market trends and operational conditions, which may evolve in the coming months.

Share Repurchase Program Update

In conjunction with its financial disclosures, Yatsen has also announced updates regarding its share repurchase programs. Initially launched in November 2021, the company has authorized repurchases totaling up to US$ 200.0 million. As of May 15, 2025, Yatsen had repurchased approximately 39.8 million ADS for around US$ 199.9 million. Now, a new share repurchase program has been approved, allowing for the repurchase of up to US$ 30.0 million worth of ordinary shares over the next 24 months. This initiative aims to enhance shareholder value while utilizing the existing cash reserves efficiently.

Looking Ahead

Yatsen’s commitment to innovation, coupled with its strategic emphasis on product development and marketing, positions the company well within the competitive beauty market landscape. With strong financial results and a clear focus on operational efficiency, Yatsen is optimistic about the future as it strives to capture more market share and drive lasting growth.

For further updates and information, Yatsen Holding Limited will hold a conference call to discuss its financial results and future strategies on May 16, 2025, at 7:30 A.M. ET. Interested investors and stakeholders are encouraged to participate in the discussion and explore the company’s vision for the upcoming periods.