Luckin Coffee Inc. Announces Second Quarter 2024 Financial Results

Core Insights - Luckin Coffee reported a significant increase in total net revenues, rising 35.5% to RMB8,402.6 million (US$1,156.2 million) in Q2 2024 compared to RMB6,201.4 million in Q2 2023 [2][8] - The company achieved a GAAP operating margin of 12.5$863.7 million) from RMB4,495.3 million in Q2 2023 [4][8] - Revenues from partnership stores grew by 24.5% to RMB1,850.2 million (US$254.6 million) compared to RMB1,485.8 million in the same quarter of 2023 [5][11] - Total operating expenses rose by 46.2$1,011.7 million) from RMB5,028.6 million in Q2 2023, primarily due to business expansion [12][8] Store Expansion - The company opened 1,371 net new stores in Q2 2024, including five in Singapore, resulting in a total of 19,961 stores at the end of the quarter [3][7] - The number of self-operated stores reached 13,056, while partnership stores totaled 6,905 [3][8] Customer Engagement - The average monthly transacting customers increased significantly to 69.7 million, up from 43.1 million in the same quarter of 2023 [3][7] - Same-store sales growth for self-operated stores was negative 20.9%, compared to a positive growth of 20.8% in the same quarter of 2023 [4][21] Profitability Metrics - GAAP operating income was RMB1,050.7 million (US$144.6 million), down from RMB1,172.8 million in Q2 2023, reflecting a GAAP operating margin decrease from 18.9$158.3 million), with a non-GAAP operating margin of 13.7%, down from 19.9% in the same quarter of 2023 [6][22] Strategic Developments - The company entered into agreements to procure approximately 120,000 metric tons of coffee beans from Brazil through the end of 2025, enhancing its supply chain [7][8] - The CEO emphasized the focus on delivering value to customers and expanding the store footprint while introducing innovative products [7][8]