Kaya Q3 FY18: India grows, Middle East turns profitable

In Q3 FY18, Kaya Group reported net revenue of INR 1,003 million, EBITDA of INR 14 million, and profit after tax (PAT) of INR -39 million.

Kaya India reported net revenue of INR 496 million (up 8% year-on-year), EBITDA of INR -31 million, and PAT of INR -53 million for Q3 FY18.

Kaya Middle East reported net revenue of INR 507 million (down 1% year-on-year), EBITDA of INR 45 million, and PAT of INR 15 million for Q3 FY18.

For Kaya Group, collection same-store sales was flat and net revenue same-store sales was -3% (both 4% and 1% respectively at constant currency). India net revenue same-store sales was 12%, while Middle East net revenue same-store sales was -15% (-9% at constant currency).

India customer count increased to 51,308 from 48,126 and ticket size increased to INR 9,973 from INR 9,307. Middle East customer count decreased to 15,960 from 16,678 and ticket size was broadly flat at USD 448 vs USD 447.

Key items included the customer lifecycle management program (introduced in Q4 2016-17), repricing of the Hair free full body offering, a focused incentive plan for products, participation in product sales, and launch of Kaya’s hair care range contributing 5% to products business.

Initiatives included Body Contouring launch (June 2017), Kaya Sweat-Free rollout in UAE (15 June 2017) and KSA (16 Sep 2017) using a profit-sharing model where the vendor funds 100% of machine cost, planned opening of Muscat City Center clinic, intimate fillers training and launch (Nov 2017), and laser hair removal Nd:YAG scale-up.