Yatsen Holding Limited Reports Steady Revenue Growth in Q1 2024

Yatsen Holding Limited, a leading beauty group based in China, has recently unveiled its unaudited financial results for the first quarter ending on March 31, 2024. The company's Founder, Chairman, and CEO, Mr. Jinfeng Huang, highlighted a 1.0% year-over-year revenue growth in the first quarter of 2024, continuing the positive trend from the previous quarter. Looking ahead, Yatsen aims to enhance the market presence of its flagship products and broaden its product portfolio.

Mr. Donghao Yang, the company's CFO, expressed satisfaction with the year's start, noting revenue growth and a 3.4 percentage point increase in gross margin to 77.7% year over year. Yatsen attributed this growth to investments in the Douyin platform, new product introductions, and brand-building efforts. Despite a rise in operating expenses as a percentage of total net revenues due to these investments, the company intends to strike a balance between capitalizing on market opportunities and optimizing costs.

In the first quarter of 2024, total net revenues climbed by 1.0% to RMB773.4 million (US$107.1 million), driven by a 3.2% rise in Color Cosmetics Brands revenues and a 0.1% increase in Skincare Brands revenues. Gross profit for the same period surged by 5.7% to RMB600.9 million (US$83.2 million), with the gross margin increasing to 77.7% from 74.3% due to higher sales of products with better margins.

However, total operating expenses for the first quarter of 2024 surged by 31.7% to RMB758.7 million (US$105.1 million) compared to the prior year period. These expenses represented 98.1% of total net revenues, up from 75.2% in the previous year, reflecting Yatsen's strategic investments and growth focus.

Yatsen Holding Limited's Q1 2024 financial results showcase steady revenue growth and margin improvement, driven by strategic investments and product innovations. The company's commitment to balancing growth initiatives with cost optimization underscores its long-term vision for sustainable success in the beauty industry.