Chinese coffee chain Luckin Coffee reported growth in both revenue and profit for the third quarter, with adjusted net profit hitting a record quarterly high, and announced a US$500 million share buyback that sent its shares up as much as 7 per cent to US$33.49.
Revenue rose 17 per cent year on year to RMB17.89 billion, while gross merchandise value grew nearly 20 per cent to RMB20.7 billion. Non-GAAP net profit jumped 51 per cent to RMB2.145 billion, a quarterly record, reflecting improving profitability.
Co-founder and chief executive Guo Jinyi said the company will launch a one-year share buyback programme worth US$500 million to further reward shareholders.
Luckin added nearly 2,600 net new stores in the third quarter, bringing its global store count to 38,900.
