Oriental Kopi Holdings Berhad: A Fresh Brew of Growth in Q2 FY2025
Greetings, fellow investors and F&B enthusiasts! Today, we’re diving into the latest financial report from a familiar name in Malaysia’s cafe scene: Oriental Kopi Holdings Berhad. Having made its debut on the ACE Market of Bursa Malaysia Securities Berhad earlier this year, the company has just released its unaudited interim financial report for the second quarter ended 31 March 2025.
This report offers us a first glimpse into Oriental Kopi’s performance post-IPO, revealing a robust financial standing and a clear growth trajectory. While direct year-on-year comparisons aren’t available due to the nature of this being its inaugural interim report as a listed entity, the quarter-on-quarter performance and year-to-date figures paint a compelling picture of a company brewing success and expanding its footprint.
Let’s pour over the details and see what’s stirring at Oriental Kopi!
Financial Highlights: Brewing Strong Results
Oriental Kopi delivered a solid performance for the second quarter, showcasing healthy revenue and profitability. It’s important to note that as this is the company’s first interim financial report post-listing, there are no comparative figures for the preceding corresponding quarter or year-to-date period.
Quarterly Performance (QoQ Comparison)
Comparing the current quarter (Q2 FY2025) with the immediate preceding quarter (Q1 FY2025), Oriental Kopi demonstrated encouraging growth:
Current Quarter (31 Mar 2025)
Revenue: RM103,181k
Gross Profit: RM25,491k
Profit Before Taxation (PBT): RM18,223k
Profit After Taxation (PAT): RM13,820k
Preceding Quarter (31 Dec 2024)
Revenue: RM97,830k
Gross Profit: RM25,322k
PBT: RM17,293k
PAT: RM13,093k
The Group’s revenue for the current quarter saw a commendable increase of 5.47% to RM103.18 million, up from RM97.83 million in the previous quarter. This growth was primarily fueled by an increase in walk-in customers at their cafe chain operations and a surge in sales from their retail and distribution of packaged goods. The Chinese New Year festivities and the opening of new outlets played a significant role in this uplift.
Despite higher staff costs and bonus payments, gross profit still saw a marginal increase of 0.67% to RM25.49 million, maintaining a healthy gross profit margin of 24.71%. Profit Before Taxation (PBT) also improved by 5.38% to RM18.22 million, aligning with the revenue growth, while Profit After Taxation (PAT) rose by 5.55% to RM13.82 million, with a PAT margin of 13.39%.
Year-to-Date Performance
For the six-month period ended 31 March 2025, Oriental Kopi reported impressive year-to-date figures:
| Metric | Current Year-to-Date (31 Mar 2025) | Preceding Year-to-Date (31 Mar 2024) |
|---|---|---|
| Revenue | RM201,011k | N/A |
| Gross Profit | RM50,813k | N/A |
| Profit Before Taxation | RM35,516k | N/A |
| Profit After Taxation | RM26,913k | N/A |
| Basic Earnings Per Share (sen) | 1.35 | N/A |
The Group’s total revenue for the first six months reached RM201.01 million, with the cafe chain operations contributing a significant 93.54% and the distribution and retail of packaged foods accounting for 5.90%.
Adjusted Profitability
It’s worth noting that the company incurred listing expenses related to its IPO. If these expenses were excluded, the adjusted profitability figures would be even higher:
- Current Quarter (31 Mar 2025): Adjusted PBT of RM19.07 million (PBT margin of 18.48%) and Adjusted PAT of RM14.67 million (PAT margin of 14.22%).
- Six-Month Period (31 Mar 2025): Adjusted PBT of RM36.78 million (PBT margin of 18.30%) and Adjusted PAT of RM28.17 million (PAT margin of 14.02%).
This adjustment provides a clearer picture of the core operational profitability of the business.
Financial Health and IPO Proceeds
The balance sheet reflects a significant strengthening of Oriental Kopi’s financial position, largely attributable to the successful IPO. Total assets surged to RM371.16 million as at 31 March 2025, from RM181.48 million as at 30 September 2024. Cash and bank balances witnessed a substantial increase to RM229.69 million from RM58.96 million over the same period, primarily due to the IPO proceeds.
The IPO successfully raised gross proceeds of RM183.96 million. As of the reporting date, RM4.17 million has been utilized for listing expenses, leaving a significant RM179.79 million unutilized for future growth initiatives. This strong cash position provides Oriental Kopi with ample dry powder for its strategic expansion plans.
Prospects and Strategic Direction
The future looks promising for Oriental Kopi, as it operates within a robust Malaysian F&B industry. The economic landscape remains encouraging, with Malaysia’s economy expanding by 4.4% in Q1 2025 and the services sector forecasted to grow by 5.5%. Household spending is also projected to increase, which directly benefits the F&B sector.
Oriental Kopi is strategically positioned to capitalize on these favorable market conditions. The Group’s key initiatives include:
- Cafe Expansion: Continuing to open new cafe outlets across various states, including Melaka and Penang, to broaden its domestic presence.
- Menu Innovation: Introducing innovative menu offerings and expanding its range of packaged food varieties, with new launches planned for the coming quarters to attract new customers and retain existing ones.
- International Reach: Actively pursuing opportunities to engage overseas distributors for its packaged food brand, aiming to bring the “Oriental Kopi” experience to a broader global market.
These strategic moves, coupled with the company’s competitive strengths and the positive industry outlook, instill confidence in Oriental Kopi’s continued business growth and anticipated improvements in both revenue and profitability for the upcoming financial year.
Summary and
Oriental Kopi Holdings Berhad’s latest quarterly report paints a picture of a company with strong operational performance and a clear vision for growth, especially in its initial phase as a publicly listed entity. The robust revenue growth, healthy profit margins, and significant cash reserves from the IPO underscore its financial stability and potential for expansion. While direct year-on-year comparisons are not available, the quarter-on-quarter growth and strategic initiatives highlight a positive momentum.
Key takeaways from this report include:
- Solid Revenue and Profitability: The Group achieved impressive revenue and profit figures for both the quarter and year-to-date, demonstrating strong operational execution.
- Strategic Expansion: Clear plans for new cafe outlets, product innovation, and international market penetration are in place, leveraging a favorable F&B industry outlook.
- Healthy Cash Position: The substantial unutilized IPO proceeds provide a strong financial backbone for future investments and expansion initiatives.
The company’s focus on expanding its cafe chain, diversifying its product offerings, and exploring international markets suggests a proactive approach to capturing market share and enhancing brand value. Investors should monitor the execution of these strategies and the utilization of the IPO proceeds, which will be key determinants of future success.
It’s important to remember that all investments carry risks, and thorough due diligence is always recommended. This analysis is for informational purposes only and should not be construed as investment advice.
What are your thoughts on Oriental Kopi’s latest performance? Do you think the company can maintain this growth momentum in the next few years, especially with its ambitious expansion plans? Share your insights in the comments section below!
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