unconsciously $Luckin Coffee (LKNCY.US)$ I've been tracking for 5 quarters. I've been in touch with Lucky since Q3 of last year. At the time, I wrote an article called “Interpretation of Lucky's 2023 Q3 Quarterly Report - Whether it has “regained new life” after the fraud crisis. Since then, it can be said that Lucky's financial reports for every quarter have been excellent, and it has basically escaped the negative effects of the previous financial fraud crisis. In addition to Gu Ailing's previous endorsement, it can be said that Lucky actually came back to life last year.
Since the last quarter, Ruixing's revenue has surpassed Starbucks's revenue in China, becoming the biggest coffee company in China.This quarter's revenue reached 7.2 billion yuan, up 84.9% year on year, and adjusted net profit was 1.14 billion yuan, up 122.1% year on year. The data is still as good as expected. Moreover, it is likely that this high growth rate will be maintained next quarter. It's just that the continuous opening of stores will eventually saturate the market. The question now is how long can Lucky's rapid growth continue?
If you've read the previous financial report interpretation, you'll have a basic understanding of Lucky. The current financial report interpretation still lists specific data as much as possible to make it easier for everyone to have a deeper understanding of Lucky. You can use some operating data, such as store expansion rate, store sales growth rate, etc., to find out some more accurate details.
1. Overall financial data — revenue is booming, but profit margins are declining
1. Operating income
Lucky Coffee's revenue for Q3 in 2023 was 7.2 billion yuan,...