On November 1st, Lucky Coffee (OTC: LKNCY) announced its financial results for the third quarter of 2023. According to financial report data, Lucky Coffee's total net income in the third quarter was 7.2 billion yuan, an increase of 84.9% year-on-year; Under the United States Accounting Standards (GAAP), the operating profit is 9617 million yuan, with an operating profit margin of 13.4%.
From the perspective of store operation, Ruixing Coffee's self operated store revenue in the third quarter was 5.141 billion yuan, an increase of 79.3% from 2.8671 billion yuan in the same period of 2022. The profit at the store level of self operated stores in the third quarter was 1.1854 billion yuan, with a profit margin of 23.1% at the store level. In the same period of 2022, it was 771.8 million yuan, with a store level profit margin of 26.9%. The growth rate of self operated store same store sales in the third quarter was 19.9%. The revenue of joint stores in the third quarter was 1.8408 billion yuan, an increase of 104.7% from 899.1 million yuan in the same period of 2022.
In line with revenue growth, the scale of Lucky Coffee stores further expanded in the third quarter, with a net new opening of 2437 stores and a 22.5% increase in the total number of stores compared to the previous quarter. As of the end of the third quarter, the total number of Lucky Coffee stores reached 13273, including 8807 self operated stores and 4466 affiliated stores, maintaining a leading position in the industry. It is expected that the number of stores will reach 15000 by the end of the year.
After entering the "era of ten thousand stores", Lucky Coffee has continued to maintain a steady growth trend, adhering to digitization as the core, relying on the three pillars of "people, goods, and market", insight into consumer demand, innovative product research and development, and stable supply chain system. The store has rapidly expanded, continuously consolidating the core competitiveness of the enterprise. Under the dual effects of accelerated store layout and continuous product innovation, the number of new customers for Lucky Coffee exceeded 30 million in the third quarter, with an average monthly trading customer count of 58.48 million, setting a new historical high. As of the third quarter, Lucky Coffee has accumulated over 200 million consumer customers.
In the third quarter, Lucky Coffee launched 12 ready-made beverages. The Maotai Latte, co branded with Kweichow Moutai, has set a new record for the single product of Ruixing Coffee -5.42 million cups were sold on the first day, and the single product sales exceeded 100 million yuan. While new products continue to break through, the classic latte series created by Lucky Lucky has long been favored by consumers. The velvet latte series also reached a milestone of sales exceeding 200 million cups since its launch in September this year. In addition, the recently launched Muscapon cheese latte also sold over 16.24 million cups in its first week.
Guo Jinyi, Chairman and CEO of Lucky Coffee, said, "The company's performance in the third quarter remained strong, with revenue breaking records and store penetration further increasing. We will continue to increase investment, focus on customer value, social value, and partner value, and strive to build Lucky Coffee into an excellent and world-class century old coffee brand