Luckin Coffee has announced a robust 35.5% increase in net revenue for the second quarter of 2024, reaching $1.15 billion (RMB8.4 billion), despite a decrease in new store openings.
In the second quarter, Luckin Coffee opened 1,371 new outlets, a significant drop from the 2,342 opened in the previous quarter. The total number of outlets at the end of Q2 stands at 19,961, which includes 13,056 company-operated locations and 6,905 partner-operated stores.
The company also reported a reduction in preopening and other expenses, which amounted to $1.9 million, a decrease of 24.3% compared to the same period last year. These expenses now represent 0.2% of total net revenues, down from 0.3% in Q2 2023.
Luckin’s average number of monthly transacting customers surged to 69.7 million, a 61.8% increase from 43.1 million in the same quarter last year. Revenue from self-operated stores rose to RMB6,277.0 million (US$863.7 million), up 39.6% from RMB4,495.3 million in Q2 2023.
The company also reported an operating income of $144.6 million, a notable turnaround from the $9 million operating loss recorded in the previous quarter.
Dr. Jinyi Guo, Chairman and CEO of Luckin Coffee, highlighted the company’s improved financial performance and announced a key development: a series of agreements to purchase approximately 120,000 metric tons of coffee beans from Brazil by the end of 2025. This strategic move is expected to enhance Luckin’s supply chain, leveraging Brazil’s leading role in global coffee production.
Additionally, Luckin Coffee celebrated the opening of its 20,000th store in Beijing, marking a significant milestone for the company.