Luckin Coffee Reports 41.2% Revenue Growth, 8.3% Operating Profit Margin in Q1 2025
2min read Luckin Coffee, a leading coffee chain in mainland China, has announced its financial results for the first quarter of 2025, revealing a notable increase in operating profit. The company reported an operating profit of 7.37 billion yuan, with an operating profit margin of 8.3%. This significant improvement in financial performance is attributed to the company's expanding scale and enhanced operational efficiency.
The total net revenue for the first quarter of 2025 reached 88.65 billion yuan, marking a year-on-year growth of 41.2%. The Gross Merchandise Value (GMV) for the quarter was 103.54 billion yuan, indicating strong demand for Luckin Coffee's products. By the end of the first quarter, the total number of Luckin Coffee stores had increased to 24,097, with a net addition of 1,757 stores during the quarter. This represents a 7.9% increase in the total number of stores compared to the previous quarter.
In terms of market expansion, Luckin Coffee has made significant progress. In the domestic market, the company added 1,743 new stores, bringing the total number of stores to 24,032. Of these, 15,541 are self-operated, while 8,491 are franchised. Internationally, Luckin Coffee added 14 new stores, bringing the total number of international stores to 65. Notably, 57 of these international stores are located in Singapore, while 8 are in Malaysia.
Ask Aime: What's behind Luckin Coffee's 7.37 billion yuan operating profit leap?
Luckin Coffee's product offerings continue to be a major draw for customers. The company's flagship product, the "Yuan Yang Milk Tea," which was launched four years ago, has achieved cumulative sales of 1.3 billion cups. Additionally, the "Freshly Brewed Jasmine Tea," launched in March, recorded a peak daily sales volume of 1.67 million cups.
The company's user base also continues to grow. The average number of monthly transacting customers reached 74.27 million, a year-on-year increase of 24.0%. By the end of the first quarter, the cumulative number of transacting customers had reached approximately 355 million. This growth in customer base is a testament to the company's ability to attract and retain customers through its high-quality products and competitive pricing.
Luckin Coffee's commitment to sustainability and environmental responsibility is also noteworthy. The company's flagship store in Beijing's Zhongguancun area has received the highest level of LEED ID+C certification for green buildings. Additionally, Luckin Coffee's standardized store model has been certified at the gold level, further demonstrating the company's dedication to sustainable practices.
Looking ahead, Luckin Coffee's CEO, Guo Jinye, expressed optimism about the company's future prospects. He stated that the company will continue to focus on providing high-quality products at competitive prices, aiming to capture a larger share of the growing Chinese coffee market. By leveraging its scale advantages and maintaining a customer-centric approach, Luckin Coffee aims to solidify its leadership position in the industry and drive long-term sustainable growth.
