Vending

Luckin Coffee lifts Q2 2022 sales, names CFO

Image provided by Luckin Coffee.

August 8, 2022

Luckin Coffee, a pioneer in coffee vending and a competitor to Starbucks in China, which last year entered into a restructuring support agreement with shareholders, reported improved revenue for Q2 2022 against the prior year period, while suffering an income dip, according to an earnings report.

The company also named Jing An to succeed Reinout Hendrik Schakel as CFO. Schakel will serve as chief strategy officer.

Q2 2022 highlights include:

• Total net revenues rose 72.4% from RMB1.91 billion in Q2 2021 RMB3.3 billion ($493.2 million) in the quarter ending June 30, 2022.
• Net income fell from RMB21.045 million to a RMB114.7 million ($17.15 million) loss for the comparative quarters.
• Net income per share fell from RMB0.01 to a RMB0.05 (1 cent) loss on both a basic and diluted basis.
• Net new store openings in the second quarter was 615, resulting in a quarter-over-quarter store unit growth of 9.3% from the number of stores at the end of the first quarter of 2022, ending the second quarter with 7,195 stores which include 4,968 self-operated stores and 2,227 partnership stores.
• Average monthly transacting customers in the second quarter were 20.7 million, representing an increase of 68.6% from 12.3 million in the prior year quarter.
• Revenues from self-operated stores rose 52.4% from RMB1.529 billion to RMB2.33 billion ($348.6 million).
• Same-store sales growth for self-operated stores was 41.2%, compared to 71.8% in the prior year quarter.
• Revenues from partnership stores rose 178.4% from RMB279.3 million to RMB777.5 million ($116.3 million).

The company anticipates that its operations will continue to be negatively affected by pandemic-related market pressures for the foreseeable future. The extent of these impacts is difficult to predict given the uncertainties relating to the spread of the pandemic and its impacts on the local and national economies.

Shares traded today at $15.45 against a 52-week range of $1.51-$17.79.

"We are proud to announce that Luckin Coffee delivered another quarter of outstanding financial and operational results despite continued pandemic-related headwinds," Dr. Jinyi Guo, chairman and CEO, said in the press release. "We reported net revenues growth of over 70% compared to the same quarter last year, same-store sales growth for self-operated stores of over 40% and our partnership store revenues continued to increase as a percentage of total revenues. Furthermore, we successfully launched 34 new products during the second quarter and sold over 24 million cups of our Coconut Cloud Latte from its launch in April 2022 through the end of the second quarter.