Luckin Coffee Sees Record Breaking Profits in 2023

By: Alexis Rubinstein, Managing Editor - Coffee Network

Mon, 26 Feb 2024, 17:32

Alexis Rubinstein

Managing Editor

CoffeeNetwork (New York) - Luckin Coffee Inc. (OTC: LKNCY) today announced its More than 8,000 Net New Store Openings in Fiscal Year 2023; Ended 2023 with More than 16,200 Stores in China Fiscal Year 2023 Net Revenues Increased 87%.

“We delivered another year of strong operational and financial performance, resulting in record high revenue up 87.3% from the year prior and advancing our pricing and expansion strategies in 2023,” said Dr. Jinyi Guo, Chairman and Chief Executive Officer of Luckin Coffee, “The number of Luckin Coffee stores doubled from the previous year, reaching a new record-high, and reinforcing our position as the coffee chain brand with the largest number of stores in China. Our operating income margin also increased from 8.7% to 12.1% year-over-year due to our scale benefits and operational efficiency efforts. In the fourth quarter, our average monthly transacting customers were 62.4 million, a 154.2% increase from the fourth quarter of 2022, which highlights the enduring popularity of our brands and products. In addition, we launched more than 100 SKUs in 2023, and with these SKUs and those we plan to introduce in the near future, we aim to continuously provide customers with high-quality products and services catering to their diverse needs.

FISCAL YEAR 2023 HIGHLIGHTS

FOURTH QUARTER 2023 FINANCIAL RESULTS

Total net revenues were RMB7,065.0 million (US$995.1 million) in the fourth quarter of 2023, representing an increase of 91.2% from RMB3,695.0 million in the same quarter of 2022. Net revenues growth was primarily driven by the increase in the number of products sold, the increase in stores in operation and the increase in the number of monthly transacting customers.

● Revenues from product sales were RMB5,301.2 million (US$746.7 million) in the fourth quarter of 2023, representing an increase of 85.9% from RMB2,851.7 million in the same quarter of 2022.

● Net revenues from freshly brewed drinks were RMB4,838.9 million (US$681.5 million), representing 68.5% of total net revenues in the fourth quarter of 2023, compared to RMB2,503.5 million, or 67.7% of total net revenues, in the same quarter of 2022.

● Net revenues from other products were RMB326.3 million (US$46.0 million), representing 4.6% of total net revenues in the fourth quarter of 2023, compared to RMB231.1 million, or 6.3% of total net revenues, in the same quarter of 2022.

● Net revenues from others were RMB136.1 million (US$19.2 million), representing 1.9% of total net revenues in the fourth quarter of 2023, compared to RMB117.1 million, or 3.2% of total net revenues, in the same quarter of 2022.

● Revenues from partnership stores were RMB1,763.8 million (US$248.4 million) in the fourth quarter of 2023, representing 25.0% of total net revenues, which is an increase of 109.1% compared to RMB843.4 million, or 22.8% of total net revenues, in the same quarter of 2022. For the fourth quarter of 2023, revenues from partnership stores included sales of materials of RMB1,192.6 million (US$168.0 million), sales of equipment of RMB322.1 million (US$45.4 million), profit sharing of RMB127.9 million (US$18.0 million), delivery service of RMB104.6 million (US$14.7 million) and other services of RMB16.5 million (US$2.3 million).

Total operating expenses were RMB6,852.3 million (US$965.1 million) in the fourth quarter of 2023, representing an increase of 102.6% from RMB3,381.8 million in the same quarter of 2022. The increase in total operating expenses was predominantly the result of the Company’s business expansion. Meanwhile, operating expenses as a percentage of net revenues was 97.0% in the fourth quarter of 2023, compared to 91.5% in the same quarter of 2022, mainly due to the increase in cost of materials as a percentage of net revenues resulting from the decreased average selling price of the Company’s products. This was partially offset by the decrease in other operating expenses as a percentage of net revenues driven by increased economies of scale and the Company’s technology-driven operations.

● Cost of materials were RMB3,509.5 million (US$494.3 million) in the fourth quarter of 2023, representing an increase of 135.0% from RMB1,493.4 million in the same quarter of 2022, generally in line with the increase in the number of products sold and the increase in sales of materials to partnership stores.

● Store rental and other operating costs were RMB1,702.0 million (US$239.7 million) in the fourth quarter of 2023, representing an increase of 109.8% from RMB811.1 million in the same quarter of 2022, mainly due to the increase in labor costs and store rental, as well as utilities and other store operating costs, as a result of the increased number of stores and items sold in the fourth quarter of 2023 compared to the same period last year.

● Depreciation and amortization expenses were RMB208.3 million (US$29.3 million) in the fourth quarter of 2023, representing an increase of 119.7% from RMB94.8 million in the same quarter of 2022, mainly due to the increase in amortization of leasehold improvements for the stores and the increase in depreciation expenses of additional equipment put into use in new stores in the fourth quarter of 2023.

● Delivery expenses were RMB467.4 million (US$65.8 million) in the fourth quarter of 2023, representing an increase of 23.3% from RMB379.1 million in the same quarter of 2022, mainly due to the increase in the number of delivery orders.

● Sales and marketing expenses were RMB399.1 million (US$56.2 million) in the fourth quarter of 2023, representing an increase of 130.2% from RMB173.4 million in the same quarter of 2022, mainly driven by an increase in advertising and other promotional expenses as the Company continued to make strategic investments in its branding through various forms and channels, and (ii) an increase in commission fees to third-party delivery platforms which was in line with the increase in the sales amount from delivery orders through third-party delivery platforms. Sales and marketing expenses amounted to 5.6% of total net revenues in the fourth quarter of 2023, compared to 4.7% of total net revenues in the same quarter of 2022.

● General and administrative expenses were RMB562.0 million (US$79.2 million) in the fourth quarter of 2023, representing an increase of 36.6% from RMB411.4 million in the same quarter of 2022, mainly driven by the increase in (i) payroll costs for headquarters staff, (ii) expenditures for office supplies, (iii) tax surcharges and stamp duties and (iv) research and development expenses, which was offset by the decrease of share-based compensation for restricted share units and options issued to management and employees. General and administrative expenses amounted to 8.0% of total net revenues in the fourth quarter of 2023, compared to 11.1% of total net revenues in the same quarter of 2022.

● Store preopening and other expenses were RMB45.5 million (US$6.4 million) in the fourth quarter of 2023, representing an increase of 335.4% from RMB10.4 million in the same quarter of 2022, mainly due to more stores being opened in the fourth quarter of 2023 compared to the same quarter of 2022. Store preopening and other expenses amounted to 0.6% of total net revenues in the fourth quarter of 2023, compared to 0.3% of total net revenues in the same quarter of 2022.

● Store level operating profit margin – self-operated stores was 13.5% in the fourth quarter of 2023, compared to 21.6% in the same quarter of 2022, primarily due to the decrease in average selling price of the Company’s products, which was offset by the benefits of economies of scale from the increased number of products sold.

GAAP operating income was RMB212.7 million (US$30.0 million) in the fourth quarter of 2023, representing a GAAP operating income margin of 3.0%, compared to a GAAP operating income of RMB313.2 million, or a GAAP operating income margin of 8.5%, in the same quarter of 2022. Non-GAAP operating income was RMB272.9 million (US$38.4 million) in the fourth quarter of 2023, representing a non-GAAP operating income margin of 3.9%, compared to a non-GAAP operating income of RMB425.6 million, or a non-GAAP operating income margin of 11.5%, in the same quarter of 2022.

Alexis Rubinstein

Coffee

This material should be construed as market commentary and represents the opinions and viewpoints of the author, and does not reflect tailored advice associated with any specific account.

The views are current only through the date stated and are subject to change at any time based upon market or other conditions, and StoneX Group Inc. (“SGI”) disclaims any responsibility to update such views. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. Past performance does not guarantee future results.

The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided.

References to certain OTC products or swaps are made on behalf of StoneX Markets, LLC (SXM), a member of the National Futures Association (NFA) and provisionally registered with the U.S. Commodity Futures Trading Commission (CFTC) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ and who have been accepted as customers of SXM.

StoneX Financial Inc. (SFI) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI is registered with the U.S. Securities and Exchange Commission (SEC) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Advisor. StoneX Financial (Canada) Inc. (SFCI) is registered in Canada and is a member of CIRO and CIPF. References to certain securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to certain exchange-traded futures and options are made on behalf of the FCM Division of SFI. Wealth Management is offered through SA Stone Wealth Management Inc., member FINRA/SIPC, and SA Stone Investment Advisors Inc., an SEC-registered investment advisor, both wholly owned subsidiaries of SGI.

R.J. O’Brien & Associates, LLC (RJO) is registered with the CFTC as a Futures Commission Merchant and is a member of NFA.

StoneX Financial Ltd (SFL) is registered in England and Wales, company no. 5616586. SFL is authorized and regulated by the Financial Conduct Authority (FCA) (registration number FRN:446717) to provide services to professional and eligible customers including: arrangement, execution and, where required, clearing derivative transactions in exchange traded futures and options. SFL is also authorized to engage in the arrangement and execution of transactions in certain OTC products, certain securities trading, precious metals trading and payment services to eligible customers. SFL is authorized and regulated by the FCA under the Payment Services Regulations 2017 for the provision of payment services. SFL is a category 1 ring-dealing member of the London Metal Exchange. In addition SFL also engages in other physically delivered commodities business and other general business activities which are unregulated and not required to be authorized by the FCA.

This communication is issued in the European Economic Area by StoneX Financial Europe GmbH (SFEG). StoneX is the trade name used by STONEX GROUP INC. and all its associated entities and subsidiaries. StoneX Financial Europe GmbH (“SFEG”) is a securities trading firm registered in Germany under Company No. HRB 80844.

StoneX APAC Pte. Ltd. (“SAP”) (Co. Reg. No 200616676W) is regulated as a Dealer (PS20190001002) under the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019 for purposes of anti-money laundering and countering the financing of terrorism. SAP is an “Approved International Trading Company” authorized to act as a “Spot Commodity Broker” under the Commodity Trading Act.

StoneX Financial Pte Ltd (Co. Reg. No 201130598R) (“SFP”) is regulated by the Monetary Authority of Singapore and is a Capital Markets Service Licence holder (for dealing in capital market products), an Exempt Financial Adviser (for advising on investment products and issuing or promulgating analyses/ reports on investment products) and a Major Payment Institution (for domestic and cross-border money transfer services).

SFP may distribute analysis/report produced by its respective foreign affiliates within the StoneX Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations Recipients should contact SFP at (65) 6309 1000 for any matters arising from, or in connection with, this webinar.

StoneX Financial (HK) Limited (CE No.: BCQ152) (“SHK”) is regulated by the Hong Kong Securities and Futures Commission for Dealing in Securities and Dealing in Futures Contracts.

StoneX Financial Pty Ltd (ACN 141 774 727) holds an Australian Financial Service License (AFSL: 345646) for Dealing in Securities, Exchange-Traded Derivatives Contracts, OTC Derivatives Contracts and Foreign Exchange Contracts, and is regulated by the Australian Securities and Investments Commission.

StoneX Securities Co., Ltd. (“SSJ”) (Co. Reg. No 010401047199) is regulated by the Japanese Financial Services Agency as a Type-I Financial Instruments Business Operator (Kanto Local Finance Bureau (FIBO)No.291’), is a member of the Financial Futures Association of Japan for dealing and broking FX and FX Option transactions, and is a member of the Japan Securities Dealers Association for dealing and broking stock indices and option transactions.

Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. Past performance of any futures or option is not indicative of future success. Indicators are not a trading system and are not published as a specific trade recommendation. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.

The report/analysis herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

Satellite view of Earth at night showing illuminated cities across Asia and the Middle East

Discover more insights

Our subscribers have access to comprehensive market analysis from StoneX spanning commodities, equities, currencies and more.

Explore subscriptions

Perspective: Morning Commentary for August 5

August 5 – U.S. equities markets are on fire this week, with both the Dow Jones and S&P 500 setting new all-time highs yesterday with futures indicating further gains again today; the marketplace remains optimistic over a deal with Iran despite no evidence of such as of yet. Crude oil is working on a lower high and low today but remains slightly on the high side on the session, while the dollar is retreating back towards Monday’s nearly two-month low. The ten-year note is steady-to-lower this morning (though solidly lower so far this month) at 4.605%, while the VIX index continues to rebound into mid-week at almost a 17-point reading this morning.

Matt ZellerWed, 05 Aug 2026, 12:39

Grains & Oilseeds
Energy
Dairy
Renewable Fuels
Cocoa
Coffee
Cotton
Sugar
Meats & Livestock
Forest Products

El Niño Keeps Brazil's Coffee Growers Watching the Sky for the Rain

Brazil could still deliver a record arabica crop, but the bigger question for growers is what the next season holds. Out of season flowering and the swing of El Niño have put the spotlight on the rains still to come.

Editorial TeamTue, 04 Aug 2026, 22:48

Coffee

Daily Coffee Report 8/4/26

Daily coffee report

StoneX Coffee TeamTue, 04 Aug 2026, 18:50

Coffee

StoneX: We open markets

Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.

Reach

With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.

Transparency

As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.

Expertise

From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.