The Chinese coffee market presents increasing growth opportunities
Luckin Coffee (Chinese: 瑞幸咖啡), one of the leading coffee chains in China, announced its Q3 2022 financial results on 22 November.
The report shows that Luckin Coffee reported net revenue of CNY 3.89 billion (USD 543.7 million) for the third quarter, up 65.7% year-on-year, and achieved an operating profit of CNY 585.3 million (GAAP), with an operating margin of 15.0%. Luckin Coffee's profitability continued to improve in Q3 2022.
In terms of store count, Luckin Coffee opened a net 651 new stores in Q3 2022, bringing the total number of stores to 7,846. Average monthly trading customer numbers increased 70.5% year-on-year to 25.1 million.
With its strengths in brand, supply chain, digitization and store scale, Luckin Coffee has maintained continuous healthy growth in several KPI, indicating that Luckin Coffee has gradually entered a stable and sustainable development phase.
Dr. Zhenyi Guo, the Chairman and CEO of Luckin Coffee, said, "The company continued to grow in both core financial and operational metrics this quarter. Based on our capabilities in research and development as well as operational efficiencies, Luckin Coffee is capitalizing on the growth opportunities presented by the fast-growing China coffee market to deliver long-term value to our shareholders and drive sustainable growth."
The domestic competitors of Luckin Coffee include Pacific Coffee (Chinese: 太平洋咖啡), Uegashima Coffee (Chinese: 上岛咖啡) and Seesaw Coffee (Chinese: 西舍咖啡).