Oriental Kopi Holdings Berhad, which operates a chain of cafes under the Oriental Kopi brand, has revealed interesting financial information ahead of its planned initial public offering on the ACE Market of Bursa Malaysia.
The cafe chain, known for its long queues, Portuguese egg tarts, polo buns and Malaysian foods, posted a revenue of RM 14 million in 2023 from the sale of consumer-branded packaged foods sold through its cafes, e-commerce platforms, website, and distribution to resellers who are wholesalers and retailers. The revenue share of Oriental Kopi’s consumer-branded packaged food business stood at 11% of total revenue in 2023, up from 6% (RM 3 million) in 2022 and 3% (RM 0.1 million) in 2021.
Consumer-branded packaged food can be broken down into in-store sales, which account for the largest share, followed by distribution and retail, which take up a smaller share.
The company’s consumer-branded packaged foods are marketed under its brands, comprising Oriental Kopi, mainly for packaged coffee and tea, and Oriental, mainly for packaged foods such as spreads, pastries, and instant noodles, as well as other seasonal packaged foods such as moon cakes.
Oriental Kopi opened its first specialty retail store in April 2024. Located in Johor, the store is dedicated to retailing our full range of its brands of consumer-branded packaged foods and ready-to-eat food such as Oriental egg tart. The specialty store does not sell third-party brand products and does not provide F&B services.
Oriental Kopi plans to secure resellers in foreign countries, namely Singapore and other foreign countries, to distribute its brands of consumer-branded packaged foods. The company obtained its first purchase order in February 2024 for the export sales of its consumer-branded packaged foods to a reseller in Hong Kong.
We will continue to keep our eyes on Oriental Kopi and explore how the foodservice brand is conquering not just the cafe segment but also the retail segment.
