Luckin Coffee became the largest coffee chain in the Chinese market last year, surpassing previous leader Starbucks in annual sales for the first time. Luckin Coffee has just released its financial report for the fourth quarter and full year of 2023 as of December 31. In the fourth quarter, Luckin Coffee’s net revenue was 7.06 billion yuan, a year-on-year increase of 91%. Net profit was 296.4 million yuan, a year-on-year increase of 444%.
Throughout 2023, Luckin Coffee's total sales in the Chinese market were 24.86 billion yuan (approximately US$3.45 billion), surpassing Starbucks' US$3.16 billion, making it the largest coffee chain in the Chinese market.
Luckin Coffee announced its 2023 financial report: revenue of 24.903 billion yuan, a year-on-year increase of 87.3%, and the number of stores exceeded 16,000
Luckin Coffee (OTC: LKNCY) announced its fourth quarter and full-year financial results for 2023. The financial report shows that total net income in 2023 will be 24.903 billion yuan, a year-on-year increase of 87.3%. In 2023, Luckin Coffee's operating profit under U.S. accounting principles (GAAP) was 3.026 billion yuan, doubling compared with 2022.
In 2023, Luckin Coffee's self-operated store revenue will be 17.880 billion yuan, an increase of 82.7% from 9.786 billion yuan in 2022; the revenue of joint-operated stores will be 6.226 billion yuan in 2023, an increase of 102.8% from 3.069 billion yuan in 2022.
At the same time, total net revenue in the fourth quarter of 2023 was RMB 7.065 billion, and revenue from self-operated stores was RMB 5.103 billion, an increase of 89.2% from RMB 2.697 billion in the same period in 2022; revenue from joint-operated stores in the fourth quarter was RMB 1.764 billion, an increase of 109.1% from RMB 843 million in the same period in 2022. Affected by factors such as seasonality, Thousands of Stores Promotions and fierce industry competition, profit growth in the fourth quarter of 2023 has declined, but Luckin Coffee said it was in line with the company's expectations.
Luckin Coffee opened a net new stores of 8,034 in 2023, with the number of stores increasing by 97.8% year-on-year from the end of 2022. As of the end of 2023, the number of Luckin Coffee's domestic stores reached 16,218, including 10,598 self-operated stores and 5,620 jointly operated stores. Luckin Coffee will also expand into overseas markets in 2023, with the total number of stores in Singapore reaching 30 during the reporting period. At the same time, Luckin Coffee launched 102 new products throughout the year, with more than 2 billion products sold and more than 1.9 billion cups of ready-made drinks. By the end of 2023, Luckin Coffee has 8 SKUs with sales exceeding 100 million.
The number of new trading customers in 2023 will exceed 95 million. Among them, the number of new trading customers of Luckin in the fourth quarter exceeded 26 million, and the average number of monthly trading customers exceeded 62 million. Luckin Coffee’s cumulative number of trading customers has reached 230 million.
Guo Jinyi, Chairman and CEO of Luckin Coffee, said: "2023 is a very milestone year for the company. Facing the fierce industry competition environment, Luckin Coffee has achieved new highs in revenue by virtue of its unique business model, endless product innovation and scale advantages; the overall profit level is healthy and controllable. , in line with the company’s expectations and strategic development direction. In the future, we will adhere to the current development strategy and pricing strategy, continue to expand market share while giving back to customers, continue to bring high-quality, high-convenience, and cost-effective coffee to consumers, and promote the continuous development of the Chinese coffee market.”