Greetings, fellow investors and market enthusiasts! Today, we’re diving into the latest financial performance of Oriental Kopi Holdings Berhad, a name synonymous with authentic Malaysian coffee and culinary experiences. The company has just released its unaudited interim financial report for the third quarter ended 30 June 2025, and it paints a picture of robust growth and strategic expansion. While this report marks an important milestone as one of their first as a publicly listed entity, it offers valuable insights into their operational momentum.
One of the most impressive takeaways from this report is the strong quarter-on-quarter growth in key financial metrics, signaling healthy business expansion. Get ready as we unpack the numbers and explore Oriental Kopi’s journey in Malaysia’s vibrant food and beverage industry.
Core Data Highlights: A Snapshot of Performance
Oriental Kopi Holdings Berhad made its debut on the ACE Market of Bursa Malaysia Securities Berhad on 23 January 2025. As such, this is their initial interim financial report, and there are no comparative figures for the preceding corresponding quarter ended 30 June 2024. However, we can analyze their performance against the immediate preceding quarter to gauge their operational trajectory.
Let’s look at the latest quarter’s performance:
Current Quarter (30.06.2025)
Revenue: RM116.75 million
Gross Profit: RM30.33 million
Profit Before Taxation (PBT): RM23.50 million
Profit After Taxation (PAT): RM17.95 million
Basic & Diluted Earnings Per Share: 0.98 sen
Preceding Corresponding Quarter (30.06.2024)
Revenue: N/A
Gross Profit: N/A
Profit Before Taxation (PBT): N/A
Profit After Taxation (PAT): N/A
Basic & Diluted Earnings Per Share: N/A
As Oriental Kopi was only listed in January 2025, no comparative figures for the same quarter last year (30 June 2024) are available in this report. This means we’ll focus on the recent quarter’s performance and its growth compared to the immediate preceding quarter.
Quarter-on-Quarter Growth Shows Strong Momentum
Comparing the third quarter (Q3 2025) to the immediate preceding second quarter (Q2 2025, ended 31 March 2025), Oriental Kopi demonstrated impressive growth:
| Metric | Current Quarter (30.06.2025) (RM’000) | Preceding Quarter (31.03.2025) (RM’000) | Change (RM’000) | Percentage Change (%) |
|---|---|---|---|---|
| Revenue | 116,745 | 103,181 | 13,564 | 13.15 |
| Gross Profit | 30,325 | 25,491 | 4,834 | 18.96 |
| PBT | 23,503 | 18,223 | 5,280 | 28.97 |
| PAT | 17,948 | 13,820 | 4,128 | 29.87 |
This quarter-on-quarter (QoQ) analysis reveals a significant upward trend. Revenue for Q3 2025 jumped by 13.15% to RM116.75 million (RM’000 refers to Malaysian Ringgit in thousands) compared to Q2 2025. This increase was primarily driven by a surge in walk-in customers at their cafe chain operations and robust sales from their retail and distribution of packaged goods segment. The opening of new cafe outlets also contributed positively to this growth.
The higher revenue translated directly into improved profitability, with Gross Profit increasing by 18.96% to RM30.33 million. More impressively, Profit Before Taxation (PBT) rose by a solid 28.97% to RM23.50 million, and Profit After Taxation (PAT) saw a healthy 29.87% increase to RM17.95 million for the quarter.
Driving Factors: Cafe Chains and Packaged Goods
Oriental Kopi’s business model is clearly working. For the current quarter, the operation of cafe chains remained the dominant revenue contributor, bringing in RM107.85 million, or 92.38% of the Group’s total revenue. The distribution and retail of packaged goods also played a significant role, contributing RM8.19 million, or 7.01%. This highlights the strong brand recognition and consumer demand for both their in-store experience and convenient packaged products.
Looking at the nine-month period ending 30 June 2025 (year-to-date), the Group recorded a robust revenue of RM317.76 million, with the cafe chain and packaged foods segments contributing RM295.87 million (93.11%) and RM20.04 million (6.31%) respectively.
Financial Health and IPO Proceeds
The Group’s financial position has significantly strengthened post-IPO. Total assets soared to RM403.14 million as of 30 June 2025, up from RM181.48 million as of 30 September 2024. Similarly, total equity more than quintupled to RM277.61 million from RM53.52 million, largely reflecting the RM183.96 million gross proceeds raised from their public issue.
The IPO proceeds are strategically earmarked for future growth. As of 30 June 2025, RM53.17 million of the RM183.96 million raised has been utilized. Key allocations include:
- RM4.45 million towards the expansion of cafes within Malaysia.
- RM41.12 million for working capital needs.
- RM7.60 million fully utilized for estimated listing expenses.
A substantial balance of RM130.79 million remains unutilized, designated for setting up a new head office, central kitchen, and warehouse, further cafe and packaged food expansion, and international marketing activities. This provides a strong war chest for Oriental Kopi’s ambitious growth agenda.
Notably, the Group is also in the process of acquiring a parcel of leasehold land with a factory in Puchong, Selangor, for RM23.00 million. This acquisition, if completed, will likely support their operational expansion, particularly for their central kitchen or manufacturing capabilities for packaged foods.
Risk and Prospect Analysis: Brewing Future Success
Oriental Kopi operates within Malaysia’s dynamic food and beverage (F&B) industry, which is poised for continued positive growth. Bank Negara Malaysia’s projection of a 4.5% economic growth in Q2 2025 (up from 4.4% in Q1 2025) and an anticipated 5.9% expansion in household spending for 2025 (compared to 5.5% in 2024) provide a strong tailwind. The recovery in tourism further bolsters demand for F&B services.
In response to these favorable market conditions, Oriental Kopi is actively pursuing a multi-pronged growth strategy:
- Cafe Expansion: The Group continues to expand its cafe footprint domestically, having recently opened new outlets in Melaka and Penang. Crucially, they are also exploring opportunities for overseas expansion, aiming to bring the unique Oriental Kopi experience to international markets.
- Product Innovation: To keep their offerings fresh and appealing, the company plans to introduce innovative menu items and expand its range of packaged foods. This includes seasonal items like mooncakes, demonstrating an agile approach to market trends.
- International Reach for Packaged Goods: Oriental Kopi is actively seeking overseas distributors for its brand of packaged foods. This initiative is key to extending the brand’s reach beyond Malaysian borders and tapping into new consumer bases.
The management maintains a positive outlook, confident that their competitive strengths, strategic initiatives, and the conducive market environment will drive continued improvements in both revenue and profitability in the upcoming financial year. It’s a clear signal of their intent to capitalize on growth opportunities.
Summary and Investment Recommendations
Oriental Kopi Holdings Berhad’s third-quarter report for FY2025 showcases a company in an accelerated growth phase, particularly highlighted by its strong quarter-on-quarter performance. The significant increases in revenue, gross profit, and net profit underscore effective operational strategies and growing consumer demand for their cafe experiences and packaged food products.
The post-IPO financial strength, with a healthy cash balance and strategic allocation of proceeds, positions the company well for its ambitious expansion plans. The proposed acquisition of land and a factory further indicates a commitment to scaling operations and enhancing capabilities.
While the absence of year-on-year comparative figures necessitates a focus on quarter-on-quarter trends for this nascent public entity, the data available is highly encouraging. The positive outlook for Malaysia’s F&B sector, coupled with Oriental Kopi’s clear strategy for domestic and international expansion and product innovation, suggests a promising trajectory.
Key areas to watch for Oriental Kopi’s future growth include:
- The successful execution of their new cafe outlet expansion plans, both locally and internationally.
- The impact of new menu offerings and diversified packaged food products on revenue generation.
- Progress in securing overseas distributors for their packaged goods, which could unlock significant new markets.
- The effective utilization of the remaining IPO proceeds to build out their central kitchen and warehouse facilities, crucial for sustained growth.
The company appears to be laying a solid foundation for long-term success, strategically investing in infrastructure and market reach. For Malaysian retail investors, Oriental Kopi’s journey will be an interesting one to follow.
What are your thoughts on Oriental Kopi’s impressive quarter-on-quarter growth and their ambitious plans for expansion, both domestically and internationally? Do you believe they can maintain this momentum in a competitive market? Share your views and insights in the comments section below!
