Louisa's revenue in the first eight months increased by 12% year-on-year, but net profit in the first half of the year fell by 68%

Luisa Coffee (2758), which emerged as a coffee shop, had a cumulative consolidated revenue of 2.109 billion yuan from January to August this year, an annual increase of 12.07%. However, the net profit after tax in the first half of the year was only about 6.705 million yuan, a decrease of about 68.61% from the same period last year. It triggered heated discussions among netizens, who bluntly said, "It was ruined by the student community."

Netizens said, "Louisa brought it upon herself. The whole store is full of students occupying seats to study, and some students are sleeping on the tables. If they just want to take a rest and drink, there is no space. Let's just change it to a K book center." Another netizen said, "Making 6.7 million yuan is not as good as me making profits by stock trading. What are you doing?"

Some netizens pointed out, "Is it caused by diversification?" Louisa has also done things that cost a lot of money in operating operations, including multi-branding, direct operation, and infrastructure construction. In addition to Louisa Coffee, the group has developed 11 brands.

Louisa said that this year's profit decline is mainly caused by three reasons. First, coffee futures have soared, eating up profits; second, in response to labor shortages, a large number of automatic equipment such as automatic milk frothers have been purchased; third, expanding multiple brands, quickly opening stores, and investing a lot of construction costs. It is expected that these investments will lead to a significant jump in profits in the second half of the year.

Louisa's revenue last year reached 3 billion yuan, of which Louisa coffee revenue reached 2.2 billion yuan, accounting for 73% of the revenue. Currently, there are about 220 direct-operated stores and more than 300 franchise stores. This year it is expected to open 30 more directly-operated stores; the catering brand revenue accounted for more than 20%. This year, more than 20 branches are expected to be added, and the revenue proportion is expected to grow to 30%.

Louisa Group has deployed diversified catering lifestyle brands. Its catering brands include Qingyan Charcoal Aged Steak (5 restaurants), Jack Brothers Steak (4 restaurants), Chutai Pikul (2 restaurants), Selfroom Gym (1 restaurant), "Wagyu Hotpot" (1 restaurant), and Jiuyang Tea and Food Culture (8 restaurants).

Dansheng Cooking (2 restaurants), SUN BERNO Vegetarian Food (3 restaurants), Louisa Bakery (1 restaurant), White Mist (3 restaurants) and Yin Yue Ge Hong Kong Style Cuisine (1 restaurant).