BEIJING, China – Luckin Coffee Inc. announced its unaudited financial results for the three months ended December 31, 2023 and fiscal year 2023. Total net revenues in the fourth quarter were RMB7,065.0 million (US$995.1 million), representing an increase of 91.2% from RMB3,695.0 million in the same quarter of 2022.
Net new store openings in the fourth quarter were 2,975, including 12 new store openings in Singapore, resulting in a quarter-over-quarter store unit growth of 22.4% from the number of stores at the end of the third quarter of 2023, ending the fourth quarter with 16,248 stores which include 10,628 self-operated stores and 5,620 partnership stores.
Average monthly transacting customers in the fourth quarter were 62.4 million, representing an increase of 154.2% from 24.6 million in the same quarter of 2022.
Revenues from self-operated stores2 in the fourth quarter were RMB5,103.4 million (US$718.8 million), representing an increase of 89.2% from RMB2,697.1 million in the same quarter of 2022.
Same-store sales growth for self-operated stores in the fourth quarter was 13.5%, compared to 9.2% in the same quarter of 2022.
Store level operating profit – self-operated stores in the fourth quarter was RMB690.4 million (US$97.2 million) with store level operating profit margin of 13.5%, compared to RMB581.5 million with store level operating profit margin of 21.6% in the same quarter of 2022.
Revenues from partnership stores in the fourth quarter were RMB1,763.8 million (US$248.4 million), representing an increase of 109.1% from RMB843.4 million in the same quarter of 2022.
GAAP operating income in the fourth quarter was RMB212.7 million (US$30.0 million), representing a GAAP operating income margin of 3.0%, compared to a GAAP operating income of RMB313.2 million, or a GAAP operating income margin of 8.5%, in the same quarter of 2022. Non-GAAP operating income in the fourth quarter, which adjusts for share-based compensation expenses, was RMB272.9 million (US$38.4 million), representing a non-GAAP operating income margin of 3.9%, compared to a non-GAAP operating income of RMB425.6 million, or a non-GAAP operating income margin of 11.5%, in the same quarter of 2022.
Luckin Coffee: Fiscal Year 2023 Highlights
- Total net revenues in fiscal year 2023 were RMB24,903.2 million (US$3,507.5 million), representing an increase of 87.3% from RMB13,293.0 million in fiscal 2022.
- Net new store openings in fiscal year 2023 were 8,034, including 30 new store openings in Singapore, resulting in a year-over-year store unit growth of 97.8% from the number of stores at the end of fiscal year 2022, ending the period with 16,248 stores which include 10,628 self-operated stores and 5,620 partnership stores.
- Average monthly transacting customers in fiscal year 2023 were 48.4 million, representing an increase of 124.1% from 21.6 million in fiscal year 2022.
- Revenues from self-operated stores in fiscal year 2023 were RMB17,880.1 million (US$2,518.4 million), representing an increase of 82.7% from RMB9,786.2 million in fiscal year 2022.
- Same-store sales growth for self-operated stores in fiscal year 2023 was 21.0%, compared to 20.6% in fiscal year 2022.
- Store level operating profit – self-operated stores in fiscal year 2023 was RMB3,974.9 million (US$559.9 million) with store level operating profit margin of 22.2%, compared to RMB2,376.0 million with store level operating profit margin of 24.3% in fiscal year 2022.
- Revenues from partnership stores in fiscal year 2023 were RMB6,225.8 million (US$876.9 million), representing an increase of 102.8% from RMB3,069.3 million in fiscal year 2022.
- GAAP operating income in fiscal year 2023 was RMB3,025.6 million (US$426.1 million), representing a GAAP operating income margin of 12.1%, compared to a GAAP operating income of RMB1,156.2 million, or a GAAP operating income margin of 8.7%, in fiscal year 2022. Non-GAAP operating income in fiscal year 2023, which adjusts for share-based compensation expenses, was RMB3,265.1 million (US$459.9 million), representing a non-GAAP operating income margin of 13.1%, compared to a non-GAAP operating income of RMB1,554.2 million, or a non-GAAP operating income margin of 11.7%, in fiscal year 2022.
“We delivered another year of strong operational and financial performance, resulting in record high revenue up 87.3% from the year prior and advancing our pricing and expansion strategies in 2023,” said Dr. Jinyi Guo, Chairman and Chief Executive Officer of Luckin Coffee, “The number of Luckin Coffee stores doubled from the previous year, reaching a new record-high, and reinforcing our position as the coffee chain brand with the largest number of stores in China. Our operating income margin also increased from 8.7% to 12.1% year-over-year due to our scale benefits and operational efficiency efforts. In the fourth quarter, our average monthly transacting customers were 62.4 million, a 154.2% increase from the fourth quarter of 2022, which highlights the enduring popularity of our brands and products. In addition, we launched more than 100 SKUs in 2023, and with these SKUs and those we plan to introduce in the near future, we aim to continuously provide customers with high-quality products and services catering to their diverse needs.”
Dr. Guo continued, “I am extremely thankful for all the hard work that has been put forth by the Luckin team over the past year, which has fueled our continued success. Looking forward to 2024, amidst various challenges that may affect our future performance, including the fierce competition in China’s coffee industry and the relatively low seasonal demands such as that in winter, we remain focused on our pricing and expansion strategy to sustain our growth and market share, with a view to delivering long-term value to our customers, shareholders and other stakeholders.”
