Today (April 23) evening, S'Young released its 2023 annual report and first quarter financial report. According to the financial report, in 2023, Shuiyang Co., Ltd. will record revenue of 4.493 billion yuan, a year-on-year decrease of 4.86%, and although the revenue fell, the net profit rose 135.42% year-on-year to 294 million yuan.
In the first quarter of this year, the performance of S'YOUNG failed to continue to grow, and both revenue and net profit declined. According to the first quarter report, from January to March 2024, a total revenue of 1.032 billion yuan and net profit of 40 million yuan were achieved, a year-on-year decrease of 1.36% and 23.25% respectively.
Increasing profits does not increase income
Net profit increased by 135% year-on-year
The performance of S'Young in 2023 is the best note on "turning over".
From the perspective of revenue, Shuiyang shares stopped at 4 billion yuan, and gradually moved away from the 5 billion yuan club. In terms of growth rate, this is the second consecutive year that it has shown a downward trend, with a year-on-year decline of 5.74% in 2022 and a narrowing decline to 4.86% in 2023.
Although the revenue declined, from the perspective of net profit, the net profit growth rate of Shuiyang shares in 2023 will turn from negative to positive, recording a triple-digit high growth, nearly 4 times higher than the growth rate in 2022.
In terms of quarters, its revenue in the second quarter was the highest, and its net profit was the highest in the fourth quarter. Specifically, the revenue in the first quarter was 1.046 billion yuan and the net profit was 52.1383 million yuan, the revenue in the second quarter was 1.243 billion yuan and the net profit was 90 million yuan, the revenue was 1.088 billion yuan and the net profit was 37.6143 million yuan in the third quarter, and the revenue was 1.116 billion yuan and the net profit was 114 million yuan in the fourth quarter.
Stretching the timeline, in fact, Shuiyang shares ushered in a highlight moment in 2021 - recording revenue of 5.01 billion yuan, entering the 5 billion club for the first time.
However, since 2022, Shuiyang shares have entered a bottleneck period, and their performance has begun to decline. For the whole year of 2022, the revenue of Shuiyang shares fell by 5.74% to 4.722 billion, falling below the 5 billion yuan mark, and the net profit fell to 125 million, a decrease of 47.14%.
From a decline of 47.14% in 2022 to an increase of 135.42% in 2023, for S'Young shares, this net profit report card is quite "golden".
The financial report did not disclose the reasons for the decline in revenue, but pointed out that the main reason for the rapid growth of net profit in 2023 is the further improvement of the multi-level brand matrix system of the company's own brands, the continuous precipitation of brand equity, the positive track of CP brand business, the further optimization of the overall business and product structure, and the continuous increase in the proportion of high gross profit brands。
However, the performance of Shuiyang shares back to growth still faces huge challenges. In the first quarter of 2024, its revenue and net profit both declined, with revenue falling 1.36% year-on-year to 1.032 billion yuan, and net profit falling 23.25% year-on-year to 40 million yuan.
Dai Yuefeng picks up the beam to "save himself"
Looking back at 2023, an obvious action of S'Young is that Chairman Dai Yuefeng will take the lead in the core business.
At the investor relations event in July last year, Dai Yuefeng revealed that at the beginning of 2023, the French high-end skin care brand Ifedan, which had begun to directly manage the acquisition, began to take over the adjustment of the company's Douyin channel business in the second quarter, and planned and adjusted the team division of labor and business development direction of the main brand Yu Nifang in the third quarter.
The chairman is personally at the helm, and these three businesses have also become the main pillars that drive the performance growth of S'YOUNG shares.
1. Ifetan continues to grow at a high rate.
In the brand camp of S'YOUNG shares, Ifetan is an existence that cannot be ignored.
According to Jiuqian data, in Q4 of 2023, the GMV of Ifedan's Tmall, JD.com and Douyin will reach 190 million, a year-on-year increase of 42.8%, of which the sales of large single product combinations will account for about 75%, and in 2023, the GMV of Ifedan's three platforms will reach 519 million yuan, a year-on-year increase of 68.3%.
This is due to the fact that in the past year, Ifetan has continued to deepen the anti-aging positioning of high-luxury sensitive skin, and the brand potential has been further enhanced——
On the product side, the CP portfolio has gradually surpassed the super mask to become the first single product, and has incubated a large number of second-echelon products, such as essence sunscreen, rich cream, Zhenjin rejuvenating series, etc., and the entire product system has been continuously enriched;
On the channel side, the company began to expand its offline channels, successively entering Galeries Lafayette in Shenzhen and Taikoo Li Sanlitun in Beijing, deepening its brand image with the help of high-end department stores, and will continue to enter high-end channels that match the brand around the world in the future.
Whether it is from the perspective of product expansion or further expansion of channels, the Ifetan brand still has a lot of room for growth in the future.
2. The Douyin channel is soaring.
In 2023, Shuiyang's online revenue will reach 4.079 billion yuan, accounting for 90.79% of the overall revenue.
It is not difficult to see that Shuiyang shares are mainly online and have entered the e-commerce platform through all channels.
At present, S'Young Co., Ltd. sells products through self-management, distribution, consignment and other modes on the Tao platform, and in the context of the slowdown in the growth of the traffic of the Tao market, 148 new online stores will be added and 22 will be closed in 2023, continuing to maintain rapid expansion.
At the same time, we continue to deepen the basic market of the Douyin platform. In 2023, Shuiyang will achieve revenue of 1.134 billion yuan on the Douyin platform, a year-on-year increase of 60.56%, achieving high growth in the Douyin channel.
3. The turning point of the Royal Mudhouse is coming.
As the main brand, Yu Nifang has faced development bottlenecks in recent years.
At the Shuiyang shares analyst meeting in October last year, Dai Yuefeng said frankly that Yu Nifang is still one of the company's head brands, although in the context of the downturn in the market environment, the performance has declined to a certain extent, but at the same time the internal division of labor has been adjusted, the brand upgrade is advancing in an orderly manner, the overall rhythm is in line with the company's expectations, "Yu Nifang brand after years of development and market popularity precipitation, but also has very valuable user assets, the future still has a good opportunity for development."
According to the business consultant & cicada mother, from October to November 2023, the GMV of Tmall and Douyin fell by 71% and 69% year-on-year respectively, and the decline narrowed to 29% in December, ushering in a significant improvement, and it is expected that with the continuous deepening of the company's adjustment and upgrading of the main brand, it is expected that 2024 is expected to usher in a growth inflection point.
In 2024, it is expected to rush another 5 billion
In order to break through the 5 billion mark and return to performance growth, S'YOUNG is still making efforts in these two aspects:
One is to build a second Ifedan.
The significance of Ifedan, in addition to the contribution to the performance level, is the verification of the operating ability of the S'YOUNG shares.
Just last year, Shuiyang Co., Ltd. signed a contract with Nicecir, a top Swiss anti-aging brand, and is expected to learn from the successful experience of Ifetan in 2024 to incubate the brand and further lay out the high-end market.
At the same time, S'Young Co., Ltd. adheres to the "global beauty CP model", not only completes a new round of strategic cooperation renewal with Johnson & Johnson, but also helps other international brands, such as the Italian makeup brand kiko, the health food brand Spanish professional medical aesthetic cinema brand Mestik, etc., to maintain good growth.
It is not difficult to see that the diversified brands and diversified businesses of S'Young are being formed, which will help the group's performance to a higher level.
The second is to continue to increase research and development.
As a technology-based beauty group, Shuiyang Co., Ltd. relies on the "dual technology" strategic empowerment of "R&D empowering brand, digital empowerment organization", while steadily increasing R&D investment, it has built a relatively complete R&D system, and has now formed a talent echelon with the chief scientist as the academic leader, and built a R&D center according to subdivided categories.
For beauty companies, whoever can make breakthroughs in the field of innovative raw materials will be able to grasp more initiative in the second half of the domestic beauty competition. Up to now, S'Young has applied for more than 350 national patents, mastered more than 10 unique raw material research and development technologies, and successfully realized the independent control of a variety of raw materials.
For example, three new raw materials, pyrroloquinoline quinone disodium salt and black ginseng extract, developed by Shuiyang Co., Ltd., have been recorded, and the ultra-small molecular weight hyaluronate enzyme digestion technology jointly developed by the Group and Academician Chen Jian has also been applied to the essence of Yu Ni Fang.
For Shuiyang shares, it may still need to go through a painful climbing period, but it is certain that after squatting, returning to the 5 billion camp may not be far away.
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