KUALA LUMPUR (May 26): Oriental Kopi Holdings Bhd (KL:KOPI) posted a 9% earnings growth in the recently-ended quarter thanks to a boost from new outlets though margins shrank from higher costs.

Net profit at the eponymous restaurant chain was RM15.03 million for the second quarter ended March 31, 2026 (2QFY2026) compared with RM13.82 million in the corresponding quarter last year, according to a bourse filing on Bursa Malaysia.

The gross margin narrowed over three percentage points to 22% as costs of goods nearly doubled while selling and distribution expenses rose sharply. Revenue surged 43% year-on-year to RM147.26 million, the highest since the company's ACE Market listing in Jan 2025, as sales of packaged foods also helped.

Overall, Oriental Kopi remains “optimistic about its prospects”, the company said, drawing comfort from resilient domestic consumer spending and rising tourist arrivals.

“As part of the growth strategy, the group will continue to focus on expanding new cafe outlets domestically as well as penetrating into new markets in overseas,” Oriental Kopi added.

For the first half ended March 31, 2026, net profit totalled RM32.08 million, an increase of 19%. The gross margin also contracted to 25% even as revenue rose 43% year-on-year to RM286.45 million from an expanded network of cafes as well as distribution and retail of packaged foods. 

No interim dividend was declared.

Shares of Oriental Kopi were down by two sen or 1.9% to RM1.05 ahead of the results announcement in after-market hours on Tuesday, valuing the company at RM2.1 billion.