Yatsen has announced its first quarter 2022 results that showed total net revenues decreased by 38.3% to RMB891.0 million ($140.5 million), compared to RMB1.44 billion in the previous year. The decrease was primarily attributable to the 45.6% decrease in net revenues from its color cosmetics brands.
Gross profit decreased by 38.0% to RMB614.5 million (US$96.9 million), compared to RMB991.6 million in the previous year.
Net loss decreased by 8.7% to RMB291.4 million (US$46.0 million), compared to RMB319.0 million in the previous year.
Total net revenues from skin care brands increased by 68.5% to RMB182.7 million, compared to RMB108.4 million in the previous year.
Jinfeng Huang, founder, chairman and CEO, said, "We remain focused on executing our strategy of building our brands, investing in R&D and pursuing sustainable growth in the first quarter of 2022. We have already observed early progress, including the growing skin care business and narrowing net loss and non-GAAP net loss. Although the pandemic continues to negatively impact our business, including our offline stores and supply chain, we are working hard to transform Yatsen and optimize operations during these challenging times."
Donghao Yang, director and chief financial officer, said, "Due to the soft industry-wide demand for color cosmetics and COVID-19 resurgences in major cities impacting the sales from our offline stores, our net revenues declined by 38.3% in the first quarter of 2022. Nevertheless, our gross margin in the first quarter reached 69.0%, our net loss decreased by 8.7% year-over-year to RMB291.4 million, and our non-GAAP net loss decreased by 33.6% year-over-year to RMB155.6 million. The improvements in net loss and non-GAAP net loss indicate that our strategic transformation is on track, though we continue to face a harsh business environment heading into the second quarter."