BEIJING, China – Luckin Coffee Inc. yesterday announced its unaudited financial results for the three months ended September 30, 2024. Total net revenues in the third quarter were RMB10,180.8 million (US$1,452.1 million), representing an increase of 41.4% from RMB7,200.0 million in the same quarter of 2023.
Net new store openings during the third quarter was 1,382, resulting in a quarter-over-quarter store unit growth of 6.9% from the number of stores at the end of the second quarter of 2024, ending the third quarter with 21,343 stores which include 13,936 self-operated stores and 7,407 partnership stores.
Average monthly transacting customers in the third quarter was 79.8 million, representing an increase of 36.5% from 58.5 million in the same quarter of 2023.
Revenues from self-operated stores in the third quarter were RMB7,501.4 million (US$1,069.9 million), representing an increase of 45.9% from RMB5,141.0 million in the same quarter of 2023.
Same-store sales growth for self-operated stores in the third quarter was negative 13.1%, compared to positive 19.9% in the same quarter of 2023.
Store level operating profit – self-operated stores in the third quarter was RMB1,745.6 million (US$249.0 million) with store level operating profit margin of 23.3%, compared to RMB1,185.4 million with store level operating profit margin of 23.1% in the same quarter of 2023.
Revenues from partnership stores in the third quarter were RMB2,341.3 million (US$333.9 million), representing an increase of 27.2% from RMB1,840.8 million in the same quarter of 2023.
GAAP operating income in the third quarter was RMB1,557.5 million (US$222.1 million), representing a GAAP operating margin of 15.3%, compared to RMB961.7 million, or a GAAP operating margin of 13.4%, in the same quarter of 2023. Non-GAAP operating income in the third quarter, which adjusts for share-based compensation expenses, was RMB1,655.6 million (US$236.1 million), representing a non-GAAP operating margin of 16.3%, compared to RMB1,025.5 million, or a non-GAAP operating margin of 14.2%, in the same quarter of 2023.
The Company recognizes the importance of the international market and is actively pursuing global expansion. The international market encompasses diverse regions, each requiring long-term investment before realizing substantial financial returns.
“We have strategically chosen Singapore as the launch point for our international expansion, given its status as a key hub in Southeast Asia,” said Luckin Coffee in a statement.
“Our first store in Singapore opened in 2023, and in the third quarter, we added eight new stores, bringing the total to 45 self-operated stores. We are also actively evaluating opportunities in the United States and other markets. Given the maturity, saturation, and competitiveness of the U.S. coffee market, we intend to approach our expansion strategy there with careful consideration and a disciplined execution plan.
For the nine months ended September 30, 2024, net revenues from Singapore reached RMB91.4 million, while costs and expenses, primarily including store operations, regional expenses, and support costs incurred at headquarters, totaled approximately RMB167.7 million. We remain committed to investing in our international growth, although we do not anticipate profitability in this area in the near term. Similar to our strategy in China, the international business will need to reach significant scale to achieve profitability.”
“I’m pleased to report that Luckin delivered outstanding results in the third quarter of 2024,” said Dr. Jinyi Guo, Chairman and Chief Executive Officer of Luckin Coffee. “With the hard work and dedication of our team and the loyalty of our customers, we achieved record net revenue and operating profit while maintaining a healthy margin. Despite the many coffee options available in China, Luckin remains a preferred choice for customers, as reflected in our record average monthly transaction user count and the addition of 1,382 net new stores. In line with our commitment to invest in a high-quality supply chain and boost efficiency, we also broke ground in August on our new state-of-the-art Innovation and Production Center in Qingdao, a strategically important economic hub in China. Looking forward, we are focused on continuing to expand our market share by offering innovative, high-quality products, enhancing brand recognition, and expanding our footprint.”
