Luckin Coffee‘s Net Revenue in H1 2021 Increased 106% YoY to Nearly $500 Million

luckin coffee
(Source: Food Service)

On Thursday, Chinese beverage chain Luckin Coffee announced its financial results for the first half of 2021, showing total net revenue of 3,182.5 million yuan ($497.743 million), representing an increase of 106.0% from 1,544.5 million yuan in the same half of 2020.

Net loss was 211.4 million yuan, a decrease of 86.4% from 1,555.2 million yuan in the same period last year. According to non-GAAP financial measures, its net loss was 84 million yuan, compared to a loss of 1,538.9 million yuan in the first half of 2020.

Among them, revenue from product sales was 2,741.3 million yuan, an increase of 89.3% from 1,448.2 million yuan in the first half of 2020. The net revenue from freshly brewed drinks was 2,422.2 million yuan ($378.832 million) , accounting for 76.1% of total net revenues in the first half of 2021, compared to 1,248.1 million yuan ($195.202 million), or 80.8% of total net revenues, in the first half of 2020.

Total operating expenses were 3.594 billion yuan in the first half of 2021, an increase of 13.0% from 3,180.4 million yuan in the first half of 2020. Meanwhile, operating expenses as a percentage of net revenues fell to 112.9%, from 205.9% in the first half of 2020. Sales and marketing expenses were 460.4 million yuan, representing a decrease of 11.0% from 517.5 million yuan in the first half of 2020.

According to Luckin Coffee’s unaudited financial results, the average monthly number of transacting customers was 10.5 million, up 35.1% from 7.8 million in the same period last year. As of the first half of the year, there were 5,259 stores, including 4,018 self-operated stores and 1,241 partnership stores, compared to 4,267 self-operated stores and 824 partnership stores by the first half of 2020.

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In response, Guo Jinyi, Chairman and CEO of Luckin Coffee, said:”The substantial revenue growth is driven by an increase in average revenue of each self-operated store. Today, with a refreshed Board of Directors and leadership team, as well as the execution of our strategy, we believe that we can continue to provide outstanding products and services to our customers.”