Yatsen Group FY24: Gross Margin Over 75%, Skincare Sees Continued Growth

Yatsen Group, which is undergoing a significant transformation in recent years, reported strong results for FY2024. Although the group saw a slight 0.6% decrease in total sales for the year, it achieved a solid 7.1% growth in Q4, driven by its cosmetics business. With ongoing efforts, the company is getting closer to returning to a positive growth trajectory.

This strong performance has reassured investors, with Yatsen Group’s stock price rising by 5.07% to $4.35 per share in pre-market trading.

In Q4 2024, Yatsen Group's sales increased by 7.1% year-on-year to reach 1.15 billion RMB, primarily driven by the growth of its cosmetics brands. The gross margin rose to 77.8%, compared to 73.7% the previous year, with high-margin product sales continuing to grow during the period. Marketing expenses fell from 717.4 million RMB to 690.6 million RMB, reducing the sales ratio from 66.9% to 60.1%. This highlights the company's strong cost control while also reflecting the growing influence of its brands. Net loss decreased by 23.4% year-on-year, from a loss of 494.5 million RMB to 378.8 million RMB.<