BEIJING, China – Luckin Coffee Inc. has announced its unaudited financial results for the three months ended June 30, 2024. Total net revenues in the second quarter were RMB8,402.6 million (US$1,156.2 million), representing an increase of 35.5% from RMB6,201.4 million in the same quarter of 2023. Net new store openings during the second quarter was 1,371, including five new store openings in Singapore, resulting in a quarter-over-quarter store unit growth of 7.4% from the number of stores at the end of the first quarter of 2024, ending the second quarter with 19,961 stores which include 13,056 self-operated stores and 6,905 partnership stores.
Average monthly transacting customers in the second quarter was 69.7 million, representing an increase of 61.8% from 43.1 million in the same quarter of 2023.
Revenues from self-operated stores in the second quarter were RMB6,277.0 million (US$863.7 million), representing an increase of 39.6% from RMB4,495.3 million in the same quarter of 2023.
Same-store sales growth for self-operated stores in the second quarter was negative 20.9%, compared to 20.8% in the same quarter of 2023.
Store level operating profit – self-operated stores in the second quarter was RMB1,351.0 million (US$185.9 million) with store level operating profit margin of 21.5%, compared to RMB1,307.5 million with store level operating profit margin of 29.1% in the same quarter of 2023.
Revenues from partnership stores in the second quarter were RMB1,850.2 million (US$254.6 million), representing an increase of 24.5% from RMB1,485.8 million in the same quarter of 2023.
GAAP operating income in the second quarter was RMB1,050.7 million (US$144.6 million), representing a GAAP operating margin of 12.5%, compared to RMB1,172.8 million, or a GAAP operating margin of 18.9%, in the same quarter of 2023. Non-GAAP operating income in the second quarter, which adjusts for share-based compensation expenses, was RMB1,150.6 million (US$158.3 million), representing a non-GAAP operating margin of 13.7%, compared to RMB1,236.3 million, or a non-GAAP operating margin of 19.9%, 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.
“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%, and a surge in our average monthly transacting customers by 61.8%, 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% 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.”
Dr. Guo continued, “As we move into the second half of 2024, we remain focused on delivering value to customers as well as leveraging our strengthened supply chain and increased store footprint to introduce more innovative and high-quality products to our growing customer base.
We believe that we are well-positioned to increase our market share, quality of our products and brand awareness. I would also like to thank the Luckin team and all of our customers for their continued support of the Luckin brand. Looking ahead, we aim to further expand our footprint and offering, creating long-term value and driving sustainable growth.”
