Luckin Coffee Inc. (OTC: LKNCY), still in provisional liquidation, registered strong results in its unaudited financial report for the three months ended Sep. 30, 2021.
“We are seeing strong performance across the business in the third quarter with increased customer retention and order frequency, greater brand recognition and our products achieving higher average selling price. Specifically, some of our innovative products, such as iced coconut latte, were very well received by our customers, benefiting from the relatively hot weather (compared to other seasons).” said Luckin Coffee chairman and chief executive Dr. Jinyi Guo.
“We continued to execute against our strategic plan with the expansion of our Luckin partnership stores contributing significantly to revenue growth," added Guo, who is leading the company's reorganization. "Our improved profitability is demonstrated through the significant reduction in operating losses for the quarter, as well as our store level operating margin increasing to over 25%.”
Founded in Beijing in 2017, Luckin is a Chinese coffee company and coffeehouse chain. In April 2020, the company revealed that it had inflated its 2019 sales revenue by up to $310 million. It resulted in the stock price crashing and several executives being fired. The company filed for Chapter 15 bankruptcy in February 2021.
Luckin Coffee also has unattended retail solutions for workplaces and public venues. It offers the Luckin Coffee Express and Luckin popMINI vending machines that incorporate Swiss-made Schaerer coffeemakers.
Luckin Coffee 2021 Q3 highlights
- Total net revenues in the third quarter were RMB 2,350.2 million S$364.7 million), an increase of 105.6% from RMB 1,143 million in the same quarter of 2020.
- Revenues from product sales in the third quarter were RMB 1,934.1 million ($300.2 million), an increase of 83.9% from RMB 1,051.6 million in the same quarter of 2020.
- Revenues from partnership stores in the third quarter were RMB 416.1 million ($64.6 million), an increase of 355% from RMB 91.5 million in the same quarter of 2020.
- Same-store sales growth for self-operated stores in the third quarter was 75.8%, compared with 0.3% in the same quarter of 2020.
- Average monthly transacting customers in the third quarter were 14.7 million, representing an increase of 79.2% from 8.2 million in the same quarter of 2020.
- Total number of stores was 5,671 as of the end of the third quarter, including 4,206 self-operated stores and 1,465 partnership stores. Self-operated stores increased by 6.4% from 3,952 stores as of the end of the same quarter of 2020 and partnership stores increased by 66.7% from 879 partnership stores as of the end of the same quarter of 2020.
- Store-level operating profit – self-operated stores in the third quarter was RMB 452.1 million ($70.2 million) with store-level operating profit margin of 25.2%, compared with a store-level operating loss – self-operated stores of RMB 2.1 million with store-level operating loss margin of 0.2% in the same quarter of 2020.