Luckin Coffee says it made its first ever operating profit in the first quarter, two years after the wannabe Starbucks challenger delisted from the Nasdaq for faking hundreds of millions of dollars of revenue, reports Caixin.
Luckin earned RMB 19.8 million ($3 million) in net profit in the period, reversing a loss of RMB 232.5 million a year earlier, and revenue soared 89.5% year-on-year to RMB 2.4 billion, according to a quarterly earnings report released Tuesday.
Operating profit reached RMB 16 million, reversing a loss of RMB 364 million in the same period a year earlier. “We have risen from the ashes,” CEO Guo Jinyi said in a Tuesday earnings call, adding that the firm’s first quarterly profit had “validated the Luckin Coffee business model.”