Coffee Service

Luckin Coffee raises Q1 2023 sales, earnings

Image provided by Luckin Coffee.

May 1, 2023

Luckin Coffee Inc., a pioneer in coffee vending and a competitor to Starbucks in China that returned to growth this year following a 2021 bankruptcy, boosted its sales and earnings for Q1 2023, according to an earnings report.

Highlights include:

Total net revenues rose 84.5% from RMB2.4 billion ($350 million) to RMB4.4 billion ($646 million), 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.
Net income rose from RMB 19.8 million ($2.86 million) to RMB 564.8 million ($82.2 million) in the comparative quarters. Non-GAAP net income was RMB 616.9 million ($89.8 million) in the first quarter of 2023.
Basic and diluted net income per ADS both rose from RMB 0.08 (1.2 cents) to RMB 1.76 (24 cents) in the comparative quarters.
Non-GAAP basic and diluted net income per ADS both rose from RMB 0.32 (4.6 cents) to RMB 1.92 (24 cents).
Net new store openings during the first quarter numbered at 1,137, including two new store openings in Singapore, resulting in a quarter-over-quarter store unit growth of 13.8% from the number of stores at the end of the fourth quarter of 2022, ending the first quarter with 9,351 stores which include 6,310 self-operated stores and 3,041 partnership stores.
Revenues from self-operated stores rose 74.9% from RMB 1.8 billion ($260 million) to RMB 3,140.4 million ($457.3 million).
Same-store sales growth for self-operated stores fell from 41.6% in to 29.6%.

Shares traded today at $26.79 against a 52-week range of $6.24-$32.30.

"The Luckin Coffee team is delighted to report strong sales growth and increased profitability in the first quarter of 2023," Dr. Jinyi Guo, chairman and CEO, said in the press release. "We had 1,137 net new store openings in the first quarter, ensuring that we remain best positioned to capture the returning consumer demand. With more than 9,300 stores, we are proud to say that Luckin Coffee is China's largest coffee chain brand."