Luckin Coffee: Announces Q2-2024 Financial Results

Beijing / CN. (lci) Luckin Coffee Inc. announced its unaudited financial results for the three months ended June 30, 2024. «We are thrilled to report another robust quarter, marked by significant growth in our product sales, the store network expansion and the increase in the number of average monthly transacting customers,» said Dr. Jinyi Guo, Chairman and Chief Executive Officer of Luckin Coffee. «This quarter, we achieved a notable increase in net revenues by 35.5 percent, and a surge in our average monthly transacting customers by 61.8 percent, compared to the same quarter last year. We have continued to make tremendous progress with the growth of our store footprint in the second quarter. In the second quarter, we added 1,371 net new stores, five of which were in Singapore. In July, we inaugurated our 20,000th store in Beijing, underscoring Luckin’s dominant position among China’s coffee chains. Additionally, our financial performance has seen a positive shift, with our GAAP operating margin improving to 12.5 percent from the first quarter. As another important development, in the presence of Brazilian Vice President Geraldo Alckmin, we entered into a series of letters of intent to procure approximately 120,000 metric tons of coffee beans from Brazil through the end of 2025. Given Brazil’s prominent position in global coffee production and exports, this collaboration is pivotal for Luckin, and we are excited about the opportunities it presents for our future endeavors.»

GAAP operating income in the second quarter was RMB 1,050.7 million (USD 144.6 million), representing a GAAP operating margin of 12.5 percent, compared to RMB 1,172.8 million, or a GAAP operating margin of 18.9 percent, in the same quarter of 2023. Non-GAAP operating income in the second quarter, which adjusts for share-based compensation expenses, was RMB 1,150.6 million (USD 158.3 million), representing a non-GAAP operating margin of 13.7 percent, compared to RMB 1,236.3 million, or a non-GAAP operating margin of 19.9 percent, in the same quarter of 2023. The decreases were mainly attributable to the reduced average selling price of the Company’s products and continued volatility in market dynamics and competition. Total net revenues were RMB 8,402.6 million (USD 1,156.2 million) in the second quarter of 2024, representing an increase of 35.5 percent from RMB 6,201.4 million in the same quarter of 2023. Net revenues growth was primarily driven by the increase in the number of products sold, the increase in stores in operation and the increase in the number of monthly transacting customers.

For additional information please refer to the company’s news release (PDF | 255 KB):

20240730-LUCKINCOFFEE-Q22024.