Luckin Coffee first quarter revenues jump 41.5%
The group reported more than a 100% jump in average monthly transacting customers in Q1.
Luckin Coffee reported a total net revenue of $869.5m in the first quarter (Q1) of 2024, a 41.5% increase from the previous year.
The company said that net revenue growth was primarily driven by the increase in the number of products sold, the increase in stores in operation and the increase in the number of monthly transacting customers.
The average monthly transacting customers in Q1 was 59.9 million, representing an increase of 103.2% from 29.5 million in the same quarter of 2023.
Net new store openings during Q1 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.
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Luckin Coffee’s total operating expenses reached $878.5m in the first quarter of 2024, representing an increase of 68.8% from last year. The increase in total operating expenses was predominantly the result of the company’s business expansion, including opening of new stores and strategic investments in branding and promotional activities, etc.
Meanwhile, operating expenses as a percentage of net revenues increased to 101.0% in the first quarter of 2024 from 84.7% in the same quarter of 2023, mainly due to the increase in store rental costs, labor costs and cost of materials as a percentage of net revenues resulting from decreased average selling price of the ccompany’s products.
The group also announced that its roasting plant in Kunshan, Suzhou City of Jiangsu Province, an investment of $120m with ann annual roasting capacity of 30,000 tons, has now officially commenced operation.
The group said the new plant will deepen its vertical integration of the coffee supply chain, thereby empowering Chinese coffee industry upgrades with new technology-driven productivity and leading a new trend of high-quality sustainable development.
“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,” dr. Jinyi Guo, Chairman and Chief Executive Officer of Luckin Coffee, said.
