PETALING JAYA: Oriental Kopi Holdings Bhd
reported robust revenue expansion for the third financial quarter ended June 30 (3QFY26), but profitability margins faced pressure from rising sales costs and higher effective taxes.
For 3QFY26, its top-line revenue grew 34.16% year-on-year (y-o-y) to RM156.63mil, driven by its core café chain operations, which generated RM141.81mil or 90.54% of total revenue, followed by packaged goods distribution and retail at RM13.60mil or 8.68%.
Pretax profit rose 4.27% y-o-y to RM24.51mil while net profit amounted to RM17mil.
The quarter-on-quarter (q-o-q) report showed stronger operational execution. Revenue increased 6.36% in 3QFY26 compared to RM147.26mil in 2QFY26 driven by higher footfall, new outlet openings and holiday spending.
Boosted by improved cost management, 3Q26 pretax profit and earnings jumped 24.12% and 13.11% q-o-q, respectively.
For the cumulative nine months, revenue surged 39.44% y-o-y to RM443.08mil, led by its café operations which contributed RM398.79mil or 90.01% of the amount, while packaged goods brought in RM40.36mil or 9.11%.
Earnings for the nine months grew 9.41% y-o-y to RM49.08mil.
Despite top-line momentum from aggressive outlet expansion and food distribution, Oriental Kopi’s overall margins narrowed.
Its 3QFY26 gross profit margin compressed to 23.48% from 25.98% in 3QFY25 due to higher cost of sales, while pretax margin contracted to 15.65% from 20.13%. Net profit margin lowered to 10.86% from 15.37%, further impacted by a higher effective tax rate.
