THE WHAT? Yatsen has announced its unaudited financial results for the fourth quarter and full year ended December 31, 2023. The fourth quarter saw the company return to growth with revenue up 6.7 percent yoy to RMB1.07 billion, although revenue for the full year was down 7.9 percent.

THE DETAILS Gross profit was also up in the final three months of the year, rising 10.6 percent to RMB790.1 million. Gross margin improved to 73.7 percent from 71.1 percent a year ago, driven by increasing sales of higher-gross margin products and more disciplined pricing and discount policies across all of the company’s brand portfolio.

THE WHY? Jinfeng Huang, Founder, Chairman and Chief Executive Officer of Yatsen, stated, “We were pleased to return to a growth trajectory in the fourth quarter of 2023 as we made further progress on our strategic transformation plan. Driven by solid performances from Galénic, Dr Wu and Eve Lom, revenues from our Skincare Brands increased by 17.6 percent and 11.4 percent year over year for the fourth quarter and the full year of 2023, respectively. Perfect Diary’s brand repositioning also continued to gain traction. Propelled by the success of the brand’s new hero product, Biolip Essence Lipstick, Perfect Diary rose to second place in the lipstick category in terms of retail sales value on Tmall and Douyin combined for December 2023. Looking ahead, we will remain focused on pursuing sustainable growth with ongoing innovation across our brands.”