Café Amazon reports record sales amidst margin pressures

Café Amazon reports record sales amidst margin pressures

Café Amazon owner PTT Oil and Retail Business (OR) reported record sales of 107 million coffee cups in Q2 2025, supported by the addition of 40 new outlets across its network. 

However, its non-oil EBITDA margin is expected to contract to around 28%, down from 29.9% in the previous quarter, according to CGS International Equities, due to higher selling and marketing expenses.

The Thai coffee chain—known for its convenience-led model and locations across petrol stations and malls—continues to be a key growth driver for OR’s non-oil portfolio. With over 4,500 stores in 11 countries, CGS International estimates that every 1% increase in Café Amazon stores could lift its full-year EBITDA by 3.4%.

In Cambodia, OR opened five new Café Amazon outlets in Q2 despite emerging operational headwinds. Although petroleum sales dipped slightly due to seasonal factors, the company maintained its expansion momentum. The report, however, said that rising logistical costs and softening consumer sentiment could weigh on performance in Q3.

In 2024, OR committed to opening 300 new Cafe Amazon outlets annually.

Amornrat Cheevavichawalkul, Executive Vice President of Research, CGS International Securities (Thailand) said that most of these outlets will be focused domestically, with market contributions in the domestic market giving better margins for the group.

However, for Q1 2025, the brand only opened only 47 new outlets.

While Café Amazon’s growth supports OR’s diversification strategy, aggressive promotional activity may pose downside risks. CGS estimates that a 10% price cut in coffee products could reduce FY2025 earnings by 6.7%.

Looking ahead, OR is exploring further non-oil business opportunities to replace its Texas Chicken business, which shuttered its doors last year.