Yushen Wang's questions to Luckin Coffee Inc (LKNCY) leadership • Q1 2025
Question
Yushen Wang from CLSA asked about the primary drivers behind the strong Q1 net profit, the sustainability of these drivers, and the company's full-year profitability outlook.
Answer
CEO Jinyi Guo stated that full-year profitability will be balanced against the top priority of scale expansion, meaning competitive pricing will continue. She highlighted potential headwinds from rising coffee bean costs in H2 and increased competition. CFO An Jing added that Q1 profit improvement was driven by a favorable product mix shift towards higher-margin refreshed drinks and significant operating leverage from increased sales volume per store.