#China #Guangzhou #financial results #Yatsen #beauty group

Yatsen Holding Limited Reports Financial Results for Q4 and Full Year 2024

Yatsen Holding Limited, a prominent beauty group based in China, unveiled its financial results for the fourth quarter and full year of 2024 on February 25, 2025. The company's performance reflects resilience amid ongoing challenges in the beauty market, with several key metrics showing improvement.

Financial Highlights

In the fourth quarter, Yatsen achieved a total net revenue of RMB 1.15 billion (approximately USD 157.3 million), marking a 7.1% increase from RMB 1.07 billion in the same quarter last year. However, for the entire year, total net revenues slightly dipped by 0.6% to RMB 3.39 billion (USD 464.9 million), down from RMB 3.41 billion in 2023.

Revenue from skincare brands, including notable products from Galénic and DR.WU, accounted for RMB 554.8 million during Q4 of 2024. While this segment remained stable compared to the previous year, it constituted 48.3% of total revenue for the quarter, down from 51.7% in 2023.

Profit Margins and Loss Reduction

Yatsen reported a gross margin improvement, rising to 77.8% for the fourth quarter compared to 73.7% a year earlier. Net losses for the quarter decreased significantly, down 23.4% to RMB 378.8 million (USD 51.9 million) compared to RMB 494.5 million in Q4 of 2023. Similarly, the full-year net loss declined by 5.3% to RMB 710.2 million (USD 97.3 million).

Notably, Yatsen achieved a non-GAAP net income of RMB 107.0 million (USD 14.7 million) for Q4 2024, reversing the loss reported in the previous year.

Leadership Insight

Mr. Jinfeng Huang, CEO of Yatsen, expressed satisfaction with the company’s performance despite industry challenges. He cited the growth of the Perfect Diary brand and the strategic initiatives in product development and cost optimization as key factors for their success.

CFO Mr. Donghao Yang spoke about the effective execution of their transformation strategies that contributed to revenue growth, improved gross margins, and streamlined operating expenses, which were reduced by 3.5% year-on-year. Yang also highlighted that the company's operating loss margin decreased significantly, from 50.3% last year to 34.0% this quarter.

Looking Forward

For Q1 2025, Yatsen anticipates total net revenues to fall between RMB 788.8 million and RMB 866.2 million, representing a year-over-year increase of approximately 2% to 12%.

Yatsen's commitment to its strategic transformation plan aims to navigate market dynamics while fostering long-term growth. As the company focuses on enhancing operational efficiencies and product development, it takes a forward-looking approach to optimizing its market presence.

For more detailed information about Yatsen and its latest press releases, interested parties can visit Yatsen's investor relations site.