BEIJING, China – Luckin Coffee Inc. today announced its unaudited financial results for the three months ended March 31, 2024. Total net revenues in the first quarter were RMB6,278.1 million (US$869.5 million), representing an increase of 41.5% from RMB4,436.7 million in the same quarter of 2023.
Net new store openings during the first quarter was 2,342, including two new store openings in Singapore, resulting in a quarter-over-quarter store unit growth of 14.4% from the number of stores at the end of the fourth quarter of 2023, ending the first quarter with 18,590 stores which include 12,199 self-operated stores and 6,391 partnership stores.
Average monthly transacting customers in the first quarter was 59.9 million, representing an increase of 103.2% from 29.5 million in the same quarter of 2023.
Revenues from Luckin Coffee ‘s self-operated stores in the first quarter were RMB4,579.6 million (US$634.3 million), representing an increase of 45.8% from RMB3,140.4 million in the same quarter of 2023.
Same-store sales growth for self-operated stores in the first quarter was negative 20.3%, compared to 29.6% in the same quarter of 2023.
Store level operating profit – self-operated stores in the first quarter was RMB320.8 million (US$44.4 million) with store level operating profit margin of 7.0%, compared to RMB791.6 million with store level operating profit margin of 25.2% in the same quarter of 2023.
Revenues from partnership stores in the first quarter were RMB1,508.0 million (US$208.9 million), representing an increase of 32.8% from RMB1,135.4 million in the same quarter of 2023.
GAAP operating loss in the first quarter was RMB65.1 million (US$9.0 million), representing a GAAP operating margin of negative 1.0%, compared to GAAP operating income of RMB678.4 million, or a GAAP operating margin of 15.3%, in the same quarter of 2023.
Non-GAAP operating income in the first quarter, which adjusts for share-based compensation expenses, was RMB5.0 million (US$0.7 million), representing a non-GAAP operating margin of 0.1%, compared to RMB730.5 million, or a non-GAAP operating margin of 16.5%, 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, coupled with the negative impact from seasonality.
Dr. Jinyi Guo, Chairman and Chief Executive Officer of Luckin Coffee, said:
“We are pleased to report strong topline growth with increases in our total net revenues, net new store openings, and average monthly transacting customers. Such growth was accomplished despite seasonality headwinds and increased competition.
We opened 2,342 net new stores in this quarter, including two new ones in Singapore, bringing our total store count to 18,590 by the end of March. While continuously resonating well with our existing base, we also demonstrate our ability to attract new customers by adding 22.9 million new transacting users in this quarter.
In addition, the launch of production at our new Jiangsu Roasting Plant marked another important milestone for the Company, which further cements our leading position in China. With an annual roasting capacity of 30,000 tons, the plant is one of the largest coffee roasters in China.
Furthermore, this plant demonstrates our commitment to ESG as it is designed to meet the Three-Star Standards for Green Buildings of China. Looking ahead, we will continuously take decisive actions to navigate any headwinds and deliver sustained value to our shareholders.”
