Luckin Coffee Reports $1.25B Revenue in 2021
Luckin Coffee on Thursday announced its unaudited financial results for the three months ended December 31, 2021 and entire fiscal year.
“We opened more than 350 net new stores during the quarter and are one of the largest coffee networks in China by the number of outlets, with more than 6,000 stores as of December 31, 2021. Overall, we are pleased with the efficiency of our store operations and increased benefits of scale and operating leverage,” said Guo Jinyi, Chairman and Chief Executive Officer of Luckin Coffee. “The company’s recent completion of the provisional liquidation also plays a major role in advancing our growth strategy.”
Luckin Coffee’s total net revenues in the fourth quarter were 2.43 billion yuan ($381.7 million), representing an increase of 80.7% from 1.35 billion in the same quarter of 2020. Revenues from self-operated stores and partnership stores in the fourth quarter were 1.84 billion yuan and 448.8 million yuan, respectively.
Luckin’s net new store openings during the fourth quarter was 353, resulting in a quarter-on-quarter store unit growth of 6.2%, ending the reported period with 6,024 stores, of which 4,397 were self-operated stores and 1,627 were partnership stores. Average monthly transacting customers in the fourth quarter also reached 16.2 million.
The operating profit margin of self-operated stores was 20.9% in the fourth quarter of 2021, compared to 8.7% in the same quarter of 2020, primarily due to the increase of the average selling price of the products and number of products sold. Luckin’s price of delivery drinks and pick-up drinks in hundreds of stores across the country was raised by about 3 yuan from the original price in December last year.
The coffee chain’s non-GAAP operating loss in the fourth quarter was 23.6 million yuan, which represents a material improvement of the operating results compared to a loss of 368.8 million yuan in the same period in 2020. Based on the current situation, the company expects losses and expenses related to “Fabricated Transactions and Restructuring” to decrease in the second quarter of 2022.
Now let’s analyze the coffee chain brand’s financial results for the full fiscal year of 2021. Its total net revenues in the period were 7.97 billion yuan, an increase of 97.5% from 4.0334 billion in fiscal year 2020. Among them, revenues from self-operated stores and partnership stores in fiscal year 2021 were 6.19 billion yuan and 1.3 billion yuan respectively.
SEE ALSO: Luckin Coffee Opens Nearly 360 Stores in January
Net new store openings during fiscal year 2021 was 1,221, resulting in a year-on-year store unit growth of 25.4%, ending the period with 6,024 stores of which 4,397 self-operated stores and 1,627 partnership stores. Average monthly transacting customers in fiscal year 2021 were 13.0 million, a year-on-year increase of 55.2%.
The non-GAAP operating loss in fiscal year 2021 was 236.3 million yuan, compared to a loss of 2.49 billion yuan in fiscal year 2020.