Oriental Kopi Expands Footprint Across Key Markets

Oriental Kopi prioritizes expansion across Malaysia and Singapore despite near-term margin pressure, banking on strong sales growth, FMCG expansion, and overseas opportunities to drive future earnings.

Oriental Kopi Expansion Drive

Oriental Kopi Holdings Berhad is doubling down on expansion as it positions itself for long-term growth, even as short-term profitability faces pressure from higher operating costs and investment spending.

The group has opened six new cafés so far in FY26, increasing its network to 34 outlets across Malaysia and Singapore. Management plans to add another four to six outlets before the financial year ends, focusing on high-traffic locations such as malls and airports. Future expansion is also expected to target underserved regions including the East Coast, Kedah, Kelantan, and Ipoh.

Despite a slight moderation in same-store sales growth, demand remains healthy. Kuala Lumpur continues to lead performance, while airport outlets and major shopping destinations remain among the strongest contributors. Tourist arrivals, particularly from China, have also supported sales momentum.

Margin pressure during the quarter was largely driven by expansion-related costs, higher labour expenses, foreign worker levies, and investments to strengthen FMCG distribution channels. However, management expects profitability to improve in the coming quarters as new outlets mature and expansion costs normalize.

Beyond café growth, Oriental Kopi is expanding its FMCG business and exploring overseas opportunities through potential joint ventures. Brand collaborations and new export markets are also expected to strengthen growth prospects, reinforcing management’s confidence in the company’s long-term outlook.