Luckin Coffee, a pioneer in coffee vending and a competitor to Starbucks in China that emerged from bankruptcy proceedings last year, improved its revenue and earnings for Q3 2023 over the prior year period, according to an earnings release. Highlights include:

  • Total net revenue rose 84.9% from RMB3.89 billion ($530 million) in Q3, 2022 to RMB7.2 billion ($986.8 million) in Q3 2023. Net revenue growth was primarily driven by the increase in the number of products sold, the increase in stores in operation and the increase in the number of monthly transacting customers, even though the average selling price of the company's products decreased.
  • Net income rose from RMB528.6 million ($72.23 million) to RMB988 million ($135.4 million) in the comparative quarters.
  • Basic and diluted net income per ADS both rose from RMB1.68 (23 cents) to RMB3.12 (40 cents) in the comparative quarters.
  • Non-GAAP basic and diluted net income per ADS rose from RMB1.68 (23 cents) and RMB1.60 (20 cents) to RMB3.60 (48 cents) and RMB3.60 (48 cents), respectively.
  • New store openings increased 22.5% to 2,437, including 11 store openings in Singapore, ending the third quarter with 13,273 stores which include 8,807 self-operated stores and 4,466 partnership stores.

Shares traded today at $32.37 against a 52-week range of $14.98 to $36.88.

"During the third quarter, we achieved a record 58.5 million average monthly transacting customers, a 132.9% year-over-year increase," Dr. Jinyi Guo, chairman and CEO, said in the press release. "As a result of our pricing strategy that is behind the increase of our market share, our operating profit margin in the third quarter fell from 15% of the same period last year to 13.4%."

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