Yatsen Holding Limited, the parent company of Chinese beauty brand Perfect Diary, posted total net revenue of 5.84 billion yuan (US$916.4 million) in 2021, a year-on-year increase of 11.6 percent. Meanwhile, the Chinese beauty group’s gross profit increased by 15.9 percent year-on-year to 3.9 billion yuan (US$611.8 million).
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The company managed to achieve a 11.6 percent growth in total net revenues for the full year 2021 despite a net revenue decrease of 22.1 percent year-on-year in 2021’s final quarter. The fall was due to “soft consumer demand and intense competition in the colour cosmetics segment,” according to Jinfeng Huang, Yatsen’s founder, chairman and chief executive.
“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.” added Jinfeng Huang.
For the first quarter of 2022, the company expects its total net revenues to be between 866.7 million yuan (US$136 million) and 938.9 million yuan (US$148 million), representing a year-on-year decline of approximately 35 percent to 40 percent.
Founded in 2016, Yatsen Holding Limited is a leading player in China’s beauty market. The company has launched and acquired multiple color cosmetics and skincare brands including Perfect Diary, Little Ondine, Abby’s Choice, Galénic, DR.WU (its mainland China business), Eve Lom and Pink Bear.