The parent company of Perfect Diary, Little Ondine, Abby’s Choice, and Galenic, Yatsen has reported full-year 2020 results, with net revenues up by 72.6 percent to RMB5.23 billion ($802.0 million). The rise was primarily driven by the growth in sales volume of beauty products thanks to an increase in the number of customers.
“We are thrilled to report solid fourth-quarter and full-year results as our efforts to scale our brands and unlock synergies between our various sales channels, resulted in powerful top-line growth,” said Mr. Jinfeng Huang, founder, Chairman, and CEO of Yatsen. “The growing popularity of homegrown Chinese beauty brands is presenting us with unprecedented opportunities that we are well-positioned to capture. With our acquisition of several distinct skincare brands and our partnership with Sensient Technologies, we are on track to offer our customers a full suite of products. While we continue to focus on innovation and quality, our efforts in expanding our offline experience stores will create even greater value for our customers and spur stronger brand engagement and loyalty. In 2021, as customers continue their journey of beauty discovery, we look forward to introducing effective skincare regimens and new color cosmetics consisting of an even fuller array of colors and textures.”
Fourth Quarter 2020 Highlights
Full Year 2020 Financial Results
Net Revenues: Total net revenues for the full year of 2020 increased by 72.6% to RMB5.23 billion ($802.0 million) from RMB3.03 billion in the prior year, primarily attributable to the growth in sales volume of beauty products driven by an increase in the number of customers.
Gross Profit and Gross Margin: Gross profit for the full year of 2020 increased by 74.5% to RMB3.36 billion ($515.6 million) from RMB1.93 billion in the prior year. The gross margin for the full year of 2020 was 64.3% compared to 63.6% in the prior year.
Income (Loss) from Operations and Non-GAAP Income (Loss) from Operations: Loss from operations for the full year of 2020 was RMB2.68 billion ($411.1 million), compared to income from operations of RMB143.8 million in the prior year. Non-GAAP loss from operations for the full year of 2020 was RMB782.1 million ($119.9 million), compared to non-GAAP income from operations of RMB218.8 million in the prior year.
Net Income (Loss) and Non-GAAP Net Income (Loss): Net loss for the full year of 2020 was RMB2.69 billion ($412.0 million), compared to net income of RMB75.4 million in the prior year. Non-GAAP net loss for the full year of 2020 was RMB787.8 million ($120.7 million), compared to non-GAAP net income of RMB150.4 million in the prior year.
Mr. Donghao Yang, CFO and Director of Yatsen, commented, “We finished the fourth quarter of 2020 with solid financial results. Our healthy top-line growth reflects strong performance across our brand portfolio and demonstrates the deep market appeal of our products, the success of our growth strategy, and our ability to skillfully execute our operational plan. 2020 was a pivotal year for Yatsen and the overall beauty industry, and our efforts in product innovation and development paid off. As we move further into 2021, we remain committed to our growth strategy of expanding our product offerings and customer base which we firmly believe will lay a solid foundation for profitability in the long run.”
For the first quarter of 2021, the company expects its total net revenues to be between RMB1.37 billion and RMB1.42 billion, representing a year-over-year growth rate of approximately 35% to 40%.
