Luckin Coffee reports net revenue surge of 35.5% in Q2

The brand saw fewer outlet openings this quarter.

Luckin Coffee reported a net revenue of $1.15b (RMB8.4b) in Q2 representing an increase of 35.5% from the same quarter last year despite opening fewer outlets this quarter.

Luckin opened a total of 1,371 outlets in Q2, 971 lower than the previous quarter. The Chinese coffee chain ended the second quarter with 19.961 outlets which include 13,056 self-operated outlets and 6,905 partnership outlets.

Luckin also said that its preopening and other expenses were at $1.9m in the second quarter of 2024, representing a decrease of 24.3% in the same quarter last year.

Store preopening and other expenses amounted to 0.2% of total net revenues in the second quarter of 2024, compared to 0.3% of total net revenues in the same quarter of 2023.

The average monthly transacting customers in the second quarter was 69.7 million, representing an increase of 61.8% from 43.1 million in the same quarter of 2023. Revenues from self-operated stores in the second quarter were RMB6,277.0 million (US$863.7 million), representing an increase of 39.6% from RMB4,495.3 million in the same quarter of 2023.

Luckin also reported an operating income of $144.6m, bouncing back from the operating loss of $9m in Q1

“Our financial performance has seen a positive shift, with our GAAP operating margin improving to 12.5% from the first quarter. As another important development, in the presence of Brazilian Vice President Geraldo Alckmin, we entered into a series of letters of intent to procure approximately 120,000 metric tons of coffee beans from Brazil through the end of 2025. Given Brazil’s prominent position in global coffee production and exports, this collaboration is pivotal for Luckin, and we are excited about the opportunities it presents for our future endeavors,” Dr. Jinyi Guo, Chairman and Chief Executive Officer of Luckin Coffee said.

Luckin Coffee recently celebrated the opening of its 20,000th outlet in Beijing.