Luckin Coffee surpasses Starbucks in China, posts strong Q4, FY 2023 results

Luckin Coffee Inc., a China-based coffee vending pioneer in addition to a nationwide retail coffee house chain, posted significant revenue growth in 2023, following a rapid fourth quarter gain, according to an earnings report.

The company surpassed Starbucks in China for the first time in 2023, according to Bloomberg News.

Earnings report highlights include:

  • Total net revenues rose 91.2% from RMB3.695 billion in Q4 2022 to RMB7.065 billion ($995.1 million) in Q4 2023, 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.
  • Net income rose from RMB54.5 million to RMB296.4 million ($41.7 million) in the comparative quarters.
  • Basic and diluted net income per ADS (American Depository Shares) remained at RMB0.96 (16 cents) from the prior year fourth quarter.
  • Net new store openings rose 22.4% to 16,248 stores in the comparative quarters which include 10,628 self-operated stores and 5,620 partnership stores.
  • Average monthly transacting customers rose 154.2% from 24.6 million to 62.4 million.
  • Revenues from self-operated stores rose 89.2% from RMB2.69 billion to RMB5.103 billion ($718.8 million).
  • Same-store sales growth for self-operated stores rose from 9.2% to 13.5%.
  • Full-year revenue grew 87.3% from RMB13.29 billion in 2022 to RMB24.9 billion ($3.507 billion) in 2023.
  • Full-year new store openings rose 97.8% to 16,248 stores which include 10,628 self-operated stores and 5,620 partnership stores.
  • Full-year average monthly transacting customers rose 124.1% from 21.6 million to 48.4 million.
  • Full-year revenues from self-operated stores rose 82.7% from RMB9.78 billion to RMB17.88 billion ($2.52 billion).

Shares traded today at $23.20 against a 52-week range of $17.77 to $38.88.

SOURCE: Fastcasual.com

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