Luckin Coffee's First Quarter Net Revenue Reaches CNY 6.28 Bn, up 41.5% YoY

On April 30th, Luckin Coffee released its financial report for the first quarter of 2024. The report reveals that the total net revenue for the first quarter amounted to CNY 6.278 billion, marking a 41.5% year-on-year increase. The net increase in the number of stores reached 2,342, bringing the total store count to 18,590.

From a store operation perspective, the first-quarter revenue from self-operated stores amounted to CNY 4.58 billion, showing a 45.8% increase from the same period in 2023, which was CNY 3.14 billion. The profit from self-operated stores in the first quarter was CNY 321 million, with a profit margin of 7.0%. The first-quarter revenue from joint-operated stores was CNY 1.508 billion, reflecting a 32.8% increase from CNY 1.135 billion in the same period of 2023.

During this quarter, Luckin Coffee further expanded its store presence, opening a net of 2,342 new stores, including 2 new stores in Singapore. This represents a 14.4% increase in total store count. As of the end of the first quarter, Luckin Coffee had a total of 18,590 stores, comprising 12,199 self-operated stores and 6,391 joint-operated stores. Luckin Coffee's stores are now spread across over 315 cities in China, maintaining a leading position in terms of store count in the Chinese coffee market.

Additionally, Luckin Coffee has been focusing on product development and innovation. In the first quarter, the company introduced 22 new products, including the Chucheng Orange Latte, Xiaobai Pear Latte, and the Summer Series, which have been selling well. The Xiaobai Pear Latte, for instance, achieved sales of over 7.24 million cups in its first week. In April of this year, on the occasion of the third anniversary of the launch of Luckin's Coconut Latte, the annual sales of this product exceeded 700 million cups, and the annual sales of the Orange C Americano surpassed 100 million cups.

Driven by accelerated store expansion and continuous product innovation, Luckin Coffee saw a net increase of 22.92 million transaction customers in the first quarter, with an average monthly transaction customer count exceeding 59.91 million, marking a 103.2% year-on-year growth. Looking at the first quarter of 2024, Luckin Coffee's total net revenue and store count have continued to steadily rise. However, due to seasonal and intense industry competition factors, the profit has declined. Under non-GAAP, the operating profit was 5 million yuan, with an operating profit margin of 0.1%.

The overall Chinese coffee market continues to show strong growth momentum, indicating sustainable industry development. To meet the demand for the company's high-quality rapid development, Luckin Coffee has been increasing its investment in building a high-quality supply chain. In the first quarter, Luckin's Yunnan Baoshan Fresh Fruit Processing Factory began trial operation, further enhancing the company's end-to-end control over coffee bean quality and optimizing its high-quality supply chain. In April, Luckin Coffee's (Jiangsu) roasting base was officially put into operation. As the largest single coffee roasting base in China, this facility will integrate environmentally friendly, intelligent production with quality control throughout the operation and production processes, providing strong quality support for Luckin Coffee's 18,000+ stores nationwide.

Guo Jin Yi, Chairman and CEO of Luckin Coffee, stated, "Currently, the Chinese coffee market has entered a crucial strategic opportunity period for high-speed development. Faced with intense industry competition, as the largest chain brand in the Chinese coffee market, Luckin will continue to accelerate store network layout, increase investment in the supply chain, strengthen digital advantages, optimize costs, improve efficiency, further expand and consolidate its leading position, stabilize its market leadership, and achieve high-speed, healthy, and sustainable performance growth."