Luckin Coffee (LKNCY, Financial) recently held its Q3 financial results conference. CEO Guo Jinyi affirmed that despite a challenging market, the company's unique business model and expanding scale led to significant growth, with quarterly revenue surpassing 10 billion yuan for the first time. This achievement is credited to the dedication of Luckin's employees and the support of over 300 million consumers. The company plans to further expand its domestic store presence, increase market share, and strengthen its leading position, aiming to offer high-quality, cost-effective products to more consumers.
In the third quarter, Luckin Coffee continued its growth momentum with net revenue reaching 10.181 billion yuan, a year-over-year increase of 41.4%. Operating profit stood at 1.557 billion yuan with a profit margin of 15.3%, while net profit reached 1.303 billion yuan, marking a net profit margin of 12.8%. Self-operated stores generated a profit of 1.746 billion yuan at a 23.3% margin. The company saw a net increase of 1,382 stores, with the total user base exceeding 300 million and a monthly average delivery user count of 79.85 million.
CFO An Jing emphasized Luckin's robust performance, maintaining balance sheet strength and flexibility to manage the current macroeconomic environment. The company is focused on improving product quality, expanding its store network, and enhancing brand presence for sustained growth.
Regarding international expansion, Luckin aims to become a world-class coffee brand. While still in the early stages, the company is investing in store development, network expansion, supply chain, and brand building to gain a competitive edge. Initial experiences in Singapore revealed financial losses but provided valuable insights into the complexities of overseas markets. Luckin is exploring opportunities in the U.S. and other markets, exercising cautious decision-making in its market expansion strategies.
Luckin Coffee continues to monitor its performance in international capital markets but remains focused on its business strategy. The company does not have a specific timeline for relisting on the main board, prioritizing business growth and long-term shareholder value through superior products and services.
