Luckin Coffee Inc. Announces Third Quarter 2024 Financial Results, Sees Revenue Jump 41%
CoffeeNetwork (New York) – Today, China-based Luckin Coffee announced their third quarter 2024 results.
Highlights include:
- 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.
- Additional information on international business.
- 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. 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.
THIRD QUARTER 2024 FINANCIAL RESULTS
- Total net revenues were RMB10,180.8 million (US$1,452.1 million) in the third quarter of 2024, representing an increase of 41.4% from RMB7,200.0 million in the same quarter of 2023. Driven by the increase in the number of products sold, stores in operation and monthly transacting customers, our net revenues has shown strong increase despite the decrease in average selling price of the Company’s products.
- Revenues from product sales were RMB7,839.5 million (US$1,118.2 million) in the third quarter of 2024, representing an increase of 46.3% from RMB5,359.3 million in the same quarter of 2023.
- Net revenues from freshly brewed drinks were RMB7,210.8 million (US$1,028.5 million), representing 70.8% of total net revenues in the third quarter of 2024, compared to RMB4,869.7 million, representing 67.6% of total net revenues, in the same quarter of 2023.
- Cost of materials were RMB3,955.4 million (US$564.2 million) in the third quarter of 2024, representing an increase of 24.9% from RMB3,166.6 million in the same quarter of 2023, mainly due to the increase in the number of products sold and the increase in sales of materials to partnership stores.
Alexis Rubinstein
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