
Daily Coffee Report 6/12/26
Daily coffee report

- Coffee
By: Alexis Rubinstein, Managing Editor - Coffee Network

CoffeeNetwork (New York) –Luckin Coffee Inc. (OTC: LKNCY) today announced its unaudited financial results for the three months ended June 30th, 2025.
SECOND QUARTER 2025 FINANCIAL RESULTS
Total net revenues were RMB12,358.7 million (US$1,723.2 million), representing an increase of 47.1% from RMB8,402.6 million in the same quarter of 2024. Net revenues growth was primarily driven by a 46.2% year-over-year increase in GMV, which reached RMB14.2 billion, as a result of an increase in the number of products sold resulting from growth in the number of stores in operation as well as monthly transacting customers.
Revenues from product sales were RMB9,491.5 million (US$1,323.4 million), representing an increase of 44.9% from RMB6,552.4 million in the same quarter of 2024.
Net revenues from freshly brewed drinks increased to RMB8,670.6 million (US$1,208.9 million) from RMB6,014.0 million in the same quarter of 2024. This revenue stream accounted for 70.2% of total net revenues, compared to 71.6% in the same quarter of 2024.
Net revenues from other products increased to RMB614.7 million (US$85.7 million) from RMB404.4 million in the same quarter of 2024. This revenue stream accounted for 5.0% of total net revenues, compared to 4.8% in the same quarter of 2024.
Net revenues from others increased to RMB206.1 million (US$28.7 million) from RMB134.1 million in the same quarter of 2024. This revenue stream accounted for 1.6% of total net revenues, compared to 1.6% in the same quarter of 2024.
Revenues from partnership stores were RMB2,867.3 million (US$399.8 million), representing an increase of 55.0% from RMB1,850.2 million in the same quarter of 2024. This revenue stream accounted for 23.2% of total net revenues, compared to 22.0% in the same quarter of 2024. Revenues from partnership stores included sales of materials of RMB1,751.3 million (US$244.2 million), delivery service fees of RMB478.3 million (US$66.7 million), profit sharing and royalty fee of RMB410.0 million (US$57.2 million), sales of equipment of RMB204.7 million (US$28.5 million), and franchise and other service fees of RMB23.0 million (US$3.2 million). Total operating expenses were RMB10,658.7 million (US$1,486.1 million), representing an increase of 45.0% from RMB7,351.9 million in the same quarter of 2024. The increase primarily resulted from the Company’s business expansion.
Meanwhile, operating expenses as a percentage of net revenues decreased to 86.2% from 87.5% in the same quarter of 2024, mainly due to the decrease of cost of materials as a percentage of total net revenues as a result of the Company’s product mix changes and supply chain strength.
Cost of materials were RMB4,600.5 million (US$641.4 million), representing an increase of 36.6% from RMB3,368.2 million in the same quarter of 2024. The increase was mainly due to increases in the number of products sold and sales of materials to partnership stores. · Store rental and other operating costs were RMB2,665.1 million (US$371.6 million), representing an increase of 30.0% from RMB2,050.2 million in the same quarter of 2024. The increase mainly resulted from the increased number of stores and items sold which led to year-over-year increases in labor costs, store rental costs as well as utilities and other store operating costs.
Depreciation and amortization expenses were RMB375.4 million (US$52.3 million), representing an increase of 29.8% from RMB289.1 million in the same quarter of 2024. The increase was mainly due to increases in amortization of leasehold improvements for the stores and depreciation expenses of additional equipment put into use in new stores.
Delivery expenses were RMB1,669.7 million (US$232.8 million), representing an increase of 175.1% from RMB606.9 million in the same quarter of 2024. The increase was mainly due to the increase in the number of delivery orders.
Sales and marketing expenses were RMB592.5 million (US$82.6 million), representing an increase of 37.0% from RMB432.6 million in the same quarter of 2024. The increase was mainly driven by increases in advertising and other promotion expenses and commissions to third-party food delivery and live streaming platforms. Sales and marketing expenses as a percentage of total net revenues was 4.8%, decreased from 5.1% in the same quarter of 2024.
General and administrative expenses were RMB736.2 million (US$102.6 million), representing an increase of 24.8% from RMB589.7 million in the same quarter of 2024. The increase was mainly driven by increases in payroll costs for general and administrative staff, share-based compensation for management and employees, and research and development expenses. General and administrative expenses as a percentage of total net revenues was 6.0%, decreased from 7.0% in the same quarter of 2024.
Store preopening and other expenses were RMB17.9 million (US$2.5 million), representing an increase of 28.0% from RMB14.0 million in the same quarter of 2024, mainly due to more stores preparing to be opened compared to the same quarter of 2024. Store preopening and other expenses as a percentage of total net revenues was 0.1%, compared to 0.2% of total net revenues in the same quarter of 2024.
Losses and expenses related to Fabricated Transactions and Restructuring were RMB nil (US$nil), compared to RMB1.2 million in the same quarter of 2024.
Store level operating margin - self-operated stores was 21.0%, compared to 21.5% in the same quarter of 2024. 2 GAAP operating income was RMB1,700.1 million (US$237.0 million), representing an increase of 61.8% from RMB1,050.7 million in the same quarter of 2024. GAAP operating margin increased to 13.8% from 12.5% in the same quarter of 2024. Non-GAAP operating income was RMB1,854.5 million (US$258.6 million), representing an increase of 61.2% from RMB1,150.6 million in the same quarter of 2024. Non-GAAP operating margin expanded to 15.0% from 13.7% in the same quarter of 2024.
Alexis Rubinstein
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June 12 – The ebb and flow of whether we have a deal with Iran or not continues, while Wall Street demonstrates that it wants to believe the positive at a time when earnings reports and much of the economic data point upward, despite some risks. Stock futures pushed higher on that optimism over a possible end to the war with Iran, along with enthusiasm over today’s highly anticipated SpaceX IPO. The VIX slipped lower to trade near 19, while the dollar index traded near 99.8. Yields on 10-year Treasuries are trading near 4.48%, while yields on 2-year Treasuries are trading near 4.08%. Money generally flowed out of both the energy and food-based commodities overnight on Iran peace prospects. WTI crude oil prices fell to an eight-week low overnight and are now trading near $85 per barrel, while Brent trades near $88 per barrel. The grain and oilseed markets were mostly lower as well.


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