Luckin Coffee Announces Fourth Quarter and Fiscal Year 2024 Financial Results

Fourth Quarter GAAP Operating Margin Expanded Year-over-Year to 10.4%

Fourth Quarter Same-Store Sales Growth for Self-Operated Stores Notably Improved Quarter-over-Quarter

Net New Store Openings of 6,092 in 2024, Ending the Year with a Total of 22,340 Stores

BEIJING, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Luckin Coffee Inc. ("Luckin Coffee" or the "Company") (OTC: LKNCY) today announced its unaudited financial results for the three months ended December 31, 2024 and fiscal year 2024.

FOURTH QUARTER 2024 HIGHLIGHTS(1)

   -- Total net revenues were RMB9,613.3 million (US$1,317.2 million), 
      representing a 36.1% year-over-year increase. 
   -- Net new store openings were 997, comprising 991 stores in China 
      (including 5 stores in Hong Kong) and 6 stores in Singapore. Total number 
      of stores increased to 22,340 at the fourth quarter end, comprising 
      14,591 self-operated stores and 7,749 partnership stores, which 
      represented a store unit growth of 4.7% from the total store count as of 
      the end of third quarter of 2024. 
   -- Average monthly transacting customers were 77.8 million, representing a 
      24.5% year-over-year increase. 
   -- Revenues from self-operated stores were RMB7,233.8 million (US$991.2 
      million), representing a 41.7% year-over-year increase. 
   -- Same-store sales growth for self-operated stores was negative 3.4%, 
      notably improved from negative 13.1% in the previous quarter, and 
      compared to 13.5% in the same quarter of 2023. 
   -- Store-level operating profit -- self-operated stores was RMB1,419.0 
      million (US$194.4 million), representing a 105.5% year-over-year 
      increase. Store-level operating profit margin increased by 610 basis 
      points year-over-year to 19.6%. 
   -- Revenues from partnership stores were RMB2,045.8 million (US$280.3 
      million), representing a 16.0% year-over-year increase. 
   -- GAAP operating income was RMB995.0 million (US$136.3 million), 
      representing a 367.8% year-over-year increase. GAAP operating margin 
      increased by 740 basis points year-over-year to 10.4%. Non-GAAP operating 
      income, which adjusts for share-based compensation expenses, was 
      RMB1,091.7 million (US$149.6 million), representing a 300.0% 
      year-over-year increase. Non-GAAP operating margin increased by 750 basis 
      points year-over-year to 11.4%. 
   -- International business update. We formed a strategic partnership with 
      Hextar Industries Berhad ("HIB") to expand into a new overseas market, 
      with HIB's subsidiary being granted exclusive franchise rights to operate 
      Luckin Coffee stores in Malaysia. This milestone in our international 
      expansion efforts enhances our ability to deliver high-quality coffee 
      experiences with a strong value proposition to more consumers worldwide. 

FISCAL YEAR 2024 HIGHLIGHTS

   -- Total net revenues were RMB34,474.8 million (US$4,723.9 million), 
      representing a 38.4% year-over-year increase. 
   -- Net new store openings were 6,092, comprising 6,071 stores in China 
      (including 5 stores in Hong Kong) and 21 stores in Singapore. Total 
      number of stores increased by 37.5% year-over-year to 22,340, comprising 
      14,591 self-operated stores and 7,749 partnership stores. 
   -- Average monthly transacting customers were 71.8 million, representing a 
      48.5% year-over-year increase. 
   -- Revenues from self-operated stores were RMB25,591.7 million (US$3,506.7 
      million), representing a 43.1% year-over-year increase. 
   -- Same-store sales growth for self-operated stores was negative 16.7%, 
      compared to 21.0% in fiscal year 2023. 
   -- Store-level operating profit -- self-operated stores was RMB4,836.4 
      million (US$662.7 million), representing a 21.7% year-over-year increase. 
      Store-level operating profit margin was 18.9%, compared to 22.2% in the 
      fiscal year 2023. 
   -- Revenues from partnership stores were RMB7,745.3 million (US$1,061.3 
      million), representing a 24.4% year-over-year increase. 
   -- GAAP operating income was RMB3,538.1 million (US$484.8 million), 
      representing a 16.9% year-over-year increase. GAAP operating margin of 
      10.3%, compared to 12.1% in the fiscal year 2023. Non-GAAP operating 
      income, which adjusts for share-based compensation expenses, was 
      RMB3,902.9 million (US$534.8 million), representing a 19.5% 
      year-over-year increase. Non-GAAP operating margin was 11.3%, compared to 
      13.1% in the fiscal year 2023. 

Dr. Jinyi Guo, Chairman and Chief Executive Officer of Luckin Coffee, said, "The year 2024 has been pivotal for us, demonstrating our robust growth and expanded leadership in the coffee industry amid a dynamic market environment. We delivered solid fourth quarter results, with same-store sales growth for self-operated stores notably improving to negative 3.4% from negative 13.1% in the prior quarter. More encouragingly, this metric turned positive in December 2024. Supported by our expanding customer base and extensive network of 22,340 stores, we recorded a strong 36.1% year-over-year revenue growth alongside a double-digit operating margin for the quarter. Looking ahead, we are strategically positioned to capitalize on the growth opportunities in China's thriving coffee market, bolstered by our unparalleled scale and powerful supply chain, enabling us to consistently deliver innovative, high-quality products to our growing clientele."

FOURTH QUARTER 2024 FINANCIAL RESULTS

Total net revenues were RMB9,613.3 million (US$1,317.2 million), representing an increase of 36.1% from RMB7,065.0 million in the same quarter of 2023. Net revenue growth was primarily driven by an increase in the number of products sold resulting from growth in (i) the number of stores in operation as well as (ii) monthly transacting customers.

   -- Revenues from product sales were RMB7,567.5 million (US$1,036.9 million), 
      representing an increase of 42.7% from RMB5,301.2 million in the same 
      quarter of 2023. 
 
          -- Net revenues from freshly brewed drinks increased to RMB6,924.5 
             million (US$948.8 million) from RMB4,838.9 million in the same 
             quarter of 2023. This revenue stream accounted for 72.0% of total 
             net revenues, compared to 68.5% in the same quarter of 2023. 
 
          -- Net revenues from other products increased to RMB496.0 million 
             (US$68.0 million) from RMB326.3 million in the same quarter of 
             2023. This revenue stream accounted for 5.2% of total net revenues, 
             compared to 4.6% in the same quarter of 2023. 
 
          -- Net revenues from others increased to RMB147.0 million (US$20.1 
             million) from RMB136.1 million in the same quarter of 2023. This 
             revenue stream accounted for 1.5% of total net revenues, compared 
             to 1.9% in the same quarter of 2023. 
   -- Revenues from partnership stores were RMB2,045.8 million (US$280.3 
      million), representing an increase of 16.0% from RMB1,763.8 million in 
      the same quarter of 2023. This revenue stream accounted for 21.3% of 
      total net revenues, compared to 25.0% in the same quarter of 2023. 
      Revenues from partnership stores included sales of materials of 
      RMB1,425.8 million (US$195.4 million), profit sharing of RMB233.5 million 
      (US$32.0 million), delivery service fees of RMB214.0 million (US$29.3 
      million), sales of equipment of RMB152.5 million (US$20.9 million), and 
      franchise and other service fees of RMB20.0 million (US$2.7 million). 

Total operating expenses were RMB8,618.3 million (US$1,180.9 million), representing an increase of 25.8% from RMB6,852.3 million in the same quarter of 2023. The increase primarily resulted from the Company's business expansion. Meanwhile, operating expenses as a percentage of total net revenues was 89.6%, markedly lower than 97.0% in the same quarter of 2023. The improvement was mainly due to the decrease of cost of materials as a percentage of total net revenues as a result of the Company's supply chain strength and product mix changes.

   -- Cost of materials were RMB3,847.2 million (US$527.2 million), 
      representing an increase of 9.6% from RMB3,509.5 million in the same 
      quarter of 2023. The increase was mainly due to increases in (i) the 
      number of products sold and (ii) sales of materials to partnership stores, 
      partially offset by the decrease in costs related to sales of equipment 
      to partnership stores as a result of a slower pace of net new store 
      openings. 
   -- Store rental and other operating costs were RMB2,372.3 million (US$325.1 
      million), representing an increase of 39.4% from RMB1,702.0 million in 
      the same quarter of 2023. The increase mainly resulted from the increased 
      number of stores and items sold which led to year-over-year increases in 
      (i) labor costs, (ii) store rental costs as well as (iii) utilities and 
      other store operating costs. 
   -- Depreciation and amortization expenses were RMB331.8 million (US$45.5 
      million), representing an increase of 59.3% from RMB208.3 million in the 
      same quarter of 2023. The increase was mainly due to increases in (i) 
      amortization of leasehold improvements for the stores and (ii) 
      depreciation expenses of additional equipment put into use in new stores. 
   -- Delivery expenses were RMB838.7 million (US$114.9 million), representing 
      an increase of 79.4% from RMB467.4 million in the same quarter of 2023. 
      The increase was mainly due to the increase in the number of delivery 
      orders. 
   -- Sales and marketing expenses were RMB572.9 million (US$78.5 million), 
      representing an increase of 43.5% from RMB399.1 million in the same 
      quarter of 2023. The increase was mainly driven by increases in (i) 

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February 20, 2025 07:03 ET (12:03 GMT)