Luckin Coffee Inc., a pioneer in coffee vending and a competitor to Starbucks in China, reported strong Q1 2022 sales and earnings, its first positive performance since receiving a $240 million infusion from private investors in 2021 following a bankruptcy protection filing, according to a company press release.

Highlights include:

  • Total net revenues in Q1 2022 were RMB2,404.6 million ($379.3 million), representing an increase of 89.5% from RMB1,268.7 million in the same quarter of 2021.
  • Net income was RMB19.8 million ($3.1 million) compared to a net loss of RMB232.5 million ($34.74 million) in the comparative quarters.
  • Non-GAAP net income was RMB99.1 million ($15.6 million) compared to net loss of RMB176.0 million ($2.63 million).
  • Basic and diluted net income per ADS was RMB0.08 ($0) and RMB0.08 ($0), respectively, compared to basic and diluted net loss per ADS of RMB0.88 ($0) and RMB0.88 ($0) in the same quarter of 2021, respectively.
  • Non-GAAP basic and diluted net income per ADS was RMB0.32 (8 cents) and RMB0.32 (8 cents), respectively, compared to basic and diluted net loss of RMB0.72 and RMB0.72, respectively, in the same quarter of 2021.
  • Net new store openings in the first quarter was 556, resulting in a quarter-over-quarter store unit growth of 9.2% from the number of stores by the end of the fourth quarter of 2021, ending the first quarter with 6,580 stores which includes 4,675 self-operated stores and 1,905 partnership stores.
  • Average monthly transacting customers in the first quarter were 16 million, representing an increase of 83% from 8.7 million in the same quarter of 2021.
  • Revenues from self-operated stores in the first quarter were RMB1,714.7 million ($270.5 million), representing an increase of 66.2% from RMB1,031.5 million ($154.12 million) in the same quarter of 2021.
  • Same-store sales growth for self-operated stores in the first quarter was 41.6%, compared to 94.5% in the same quarter of 2021.

Shares traded at $9.08 Wednesday against a 52-week range of $5.16-$17.79.

"Our team continues to execute on our strategic plan, delivering another quarter of improved financial and operational results," Dr. Jinyi Guo, chairman and CEO, said in the press release.

"Despite continued pandemic-related headwinds, we reported strong bottom and top-line performance, with net revenue growth of 89.5% and same-store sales growth for our self-operated stores of over 40% from the prior year. We also delivered our first quarterly operating profit since our founding. This is an important milestone and serves as validation of our strategic plan and relentless focus on execution."

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