Luckin Coffee Added 1,371 Net New Stores in Q2 as Revenue Rose 35.5%

This is an English adaptation of a FoodBud historical article originally published on July 30, 2024.

Luckin Coffee reported results for the second quarter of 2024, ended June 30. Total net revenue reached RMB 8.4026 billion, up 35.5% year over year. Net income was RMB 871.1 million, down from RMB 998.7 million in the second quarter of 2023. Non-GAAP net income was RMB 971.0 million, compared with RMB 1.0622 billion a year earlier.

As of July 18, 2024, Luckin Coffee had surpassed 20,000 stores. Overall, the quarter showed continued revenue growth, while profit declined year over year.

Luckin Coffee chairman and CEO Dr. Jinyi Guo said the quarter delivered significant growth in product sales, store network expansion, and average monthly transacting customers. He noted that net revenue increased 35.5% year over year and average monthly transacting customers rose 61.8%. In the second quarter, Luckin added 1,371 net new stores, including five in Singapore. In July, the company opened its 20,000th store in Beijing.

Guo also said GAAP operating margin improved from the first quarter to 12.5%. He added that, witnessed by Brazilian Vice President Geraldo Alckmin, Luckin signed a series of letters of intent to purchase about 120,000 tonnes of coffee beans from Brazil by the end of 2025.

Q2 Operating Highlights

• Net new stores opened in Q2 2024: 1,371.
• Total stores at quarter-end: 19,961.
• Self-operated stores: 13,056.
• Partnership stores: 6,905.
• Average monthly transacting customers: 69.70 million, up 61.8% year over year.
• Revenue from self-operated stores: RMB 6.277 billion, up 39.6% year over year.
• Same-store sales for self-operated stores: down 20.9% year over year.

Revenue Mix

Product sales revenue in Q2 2024 was RMB 6.552 billion, up 39.0% year over year.

Freshly made beverages generated RMB 6.014 billion in net revenue, representing 71.6% of total net revenue. In the same period of 2023, freshly made beverages generated RMB 4.235 billion, or 68.2% of total net revenue.

Other products generated RMB 404.4 million in net revenue, representing 4.8% of total net revenue. In the same period of 2023, other products generated RMB 326.0 million, or 5.3% of total net revenue.

Other business revenue was RMB 134.0 million, representing 1.6% of total net revenue. In the same period of 2023, other business revenue was RMB 154.9 million, or 2.5% of total net revenue.

Cash Flow and Liquidity

Net cash provided by operating activities in Q2 2024 was RMB 1.549 billion. As of June 30, 2024, cash and cash equivalents, restricted cash, term deposits, and short-term investments totaled RMB 3.786 billion.

Note: the Brazil coffee-bean procurement plan and related forward figures are historical statements from 2024.