Unlock stock picks and a broker-level newsfeed that powers Wall Street.

Yatsen Holding Ltd (YSG) Q4 2024 Earnings Call Highlights: Strong Revenue Growth and Improved ...

In This Article:

  • Total Net Revenues (Q4 2024): RMB1.15 billion, up 7.1% year-over-year.

  • Color Cosmetics Revenue Growth (Q4 2024): 16.4% year-over-year increase.

  • Gross Profit (Q4 2024): RMB893 million, up 13% year-over-year.

  • Gross Margin (Q4 2024): Increased to 77.8% from 73.7% in the prior year period.

  • Total Operating Expenses (Q4 2024): Decreased by 3.5% to RMB1.28 billion.

  • Net Loss (Q4 2024): RMB378.8 million, with a net loss margin of 33%.

  • Non-GAAP Net Income (Q4 2024): RMB107 million, with a non-GAAP net income margin of 9.3%.

  • Total Net Revenues (Full Year 2024): RMB3.39 billion, a decrease of 0.6% year-over-year.

  • Gross Profit (Full Year 2024): RMB2.62 billion, up 4.1% year-over-year.

  • Gross Margin (Full Year 2024): Increased to 77.1% from 73.6% in the prior year period.

  • Net Loss (Full Year 2024): RMB710.2 million, with a net loss margin of 20.9%.

  • Non-GAAP Net Loss (Full Year 2024): RMB128.2 million, with a non-GAAP net loss margin of 3.8%.

  • Cash, Restricted Cash, and Short-term Investments (End of 2024): RMB1.36 billion.

  • Net Cash Generated from Operating Activities (Q4 2024): RMB202.2 million.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Yatsen Holding Ltd (NYSE:YSG) reported a 7.1% year-over-year increase in total net revenues for the fourth quarter of 2024, aligning with their guidance.

  • The company's gross margin improved significantly to 77.8% in Q4 2024 from 73.7% in the prior year period, driven by higher sales of high-margin products.

  • Color Cosmetics revenues increased by 16.4% in Q4 2024, primarily due to the recovery of the Perfect Diary brand.

  • Yatsen's non-GAAP net income margin improved to 9.3% in Q4 2024, compared to a non-GAAP net loss margin of 8.7% in the prior year period.

  • The company successfully reduced total operating expenses by 3.5% in Q4 2024, contributing to improved profitability.

Negative Points

  • Despite the positive quarterly performance, Yatsen Holding Ltd (NYSE:YSG) experienced a 0.6% decline in total net revenues for the full year 2024.

  • The beauty industry in China remained subdued in 2024, with total beauty retail sales declining 1.5% year-over-year in Q4.

  • Yatsen's net loss for Q4 2024 was RMB378.8 million, although this was an improvement from the prior year period.

  • Impairment of goodwill for Q4 2024 was RMB403.1 million, primarily due to weaker-than-expected operating results for the Eve Lom brand.

  • The company's cash, restricted cash, and short-term investments decreased to RMB1.36 billion as of December 31, 2024, from RMB2.08 billion the previous year.