Beauty Company Yatsen Reports Revenue Loss in Q4, Full Year 2021 Financial Results

Total net revenues for Yatsen Holding Limited, a leading Chinese beauty company, decreased by 22.1% in the fourth quarter for the full year ended Dec. 31, 2021 from RMB 1.53 billion ($239.8 million) from RMB1.96 billion in the prior year period, company officials announced March 11.
 

Total net revenues for the full year of 2021 increased by 11.6% to RMB5.84 billion ($916.4 million) from RMB5.23 billion in the prior year period.
 

Gross sales for the fourth quarter of 2021 decreased by 17.2% to RMB1.88 billion ($295 million) from RMB2.27 billion in the prior year period. Gross sales for the full year of 2021 increased by 13.1% to RMB6.84 billion ($1.07 billion) from RMB6.05 billion in the prior year period.
 

“The fourth quarter was a challenging quarter, marked by soft consumer demand and intense competition in the color cosmetics segment,” said Jinfeng Huang, founder, chairman and chief executive officer of Yatsen. “Despite the challenges, we increased our topline and gross margin on a full-year basis, driven by the significant growth of our skincare brands. We reaffirm our commitments to pursue brand-building, R&D investments and sustainable growth as the core pillars of our strategic transition in 2022.”
 

According to Chief Financial Officer Donghao Yang, the company achieved 11.6% growth in total net revenues for the full year 2021, despite recording a 22.1% decline in total net revenues over the fourth quarter.   
 

“Our full year gross margin increased by 2.5 percentage points to 66.8%, compared with 64.3% for the prior year, on the back of greater discipline in pricing and promotions,” said Yang. “Looking forward, we will remain highly focused on improving operating margin, optimizing our cost structure and investing in branding and R&D to ensure our long-term success. With a cash balance of approximately RMB3.1 billion at the start of the year of 2022, we have sufficient liquidity and flexibility to pursue our strategic goals.”