Financial Review:

Despite the headwinds of rising food costs, human resources, rental costs, and inflation, we are proud to report a robust financial performance for FY2023. The Group’s revenue rose to S$116.9 million, marking an increase of 15% compared to the previous year of S$101.7 million. This growth reflects our resilience and adaptability in a dynamic business environment.

Profit before tax also witnessed a commendable rise, reaching S$4.2 million, representing a 50% increase over S$2.8 million in FY2022. After factoring in tax and other adjustments, the Group achieved a net profit attributable to owners of the Company of $3.5 million, underscoring our commitment to delivering sustainable value to our stakeholders.

Business Review:

Our Food & Beverage segment continued to evolve with the rollout of new concepts and brands amidst the challenges posed by the pandemic’s aftermath. While facing pressures from escalating costs, particularly in labor and food, we remained steadfast in our commitment to innovation and customer satisfaction. We introduced exciting new offerings, such as the Swensen’s Ice Cream ‘Nuggets’ and the new brands MoreBatter and Restaurant Fiz, garnering positive responses from our patrons. Our strategic focus on diversifying revenue streams, including through food delivery platforms and innovative product bundles, has positioned us well for sustained recovery in the post- pandemic era.

In the Property segment, the Group commemorates a decade since diversification, reinforcing property Investment and management as a core pillar alongside its F&B business. The Group progresses steadily on Baywind Residences, a joint venture development of 24 apartments in Lorong N Telok Kurau, slated for completion in Q4 2025. Notably, despite regulatory shifts, all units were successfully sold.

Accolades:

We are humbled that our commitment to excellence has once again been recognized by industry peers and consumers alike. Swensen’s was awarded the Platinum Award in the Family Restaurant category for the sixth consecutive year, a great encouragement given to from public votes. We would like to thank our dedicated staff team for their quality service and passion in delivering joy to our customers, the recognition of 21 Excellent Service Award (EXSA) affirms their exceptional performance. Our heritage brand, Chilli Padi Nonya Restaurant, was honoured as the Runner-up for Best Asian Restaurant in Restaurant Association of Singapore’s (RAS) Epicurean Star Awards 2023, reaffirming our dedication to culinary excellence.

Giving Back:

ABR continues in our commitment to support local communities through our philanthropic initiatives, collaborating with partners such as The Art Faculty (TAF), Glyph, Asian Women’s Welfare Association (AWWA), Tan Tock Seng Hospital (TTSH) and Club Rainbow to make a positive impact. National Volunteer & Philanthropy Centre (NVPC) has once again conferred ABR for Company of Good 2023’s Champion of Good Award, since launch in 2017, acknowledging our ongoing commitment to corporate social responsibility and community engagement.

Sustainability:

As a leader in the F&B industry, sustainability remains at the forefront of our business strategy. We are committed to incorporating sustainable practices across our operations, from sourcing carbon-neutral ingredients to promoting employee wellbeing. We adopt Singapore Exchange (SGX) recommended approach to sustainability reporting and work alongside best practices to ensure we achieve Singapore Climate Action Plan. Our partnership with DBS for the Better World Café exemplifies our commitment to environmental stewardship and social responsibility.

Dividends:

In recognition of our performance, the Board is proposing a final tax-exempt (1-tier) cash dividend of 1.00 Singapore cents per share for FY2023, subject to approval at the upcoming Annual General Meeting. Together with the interim dividend, this brings the total dividend payout for the year to 1.25 Singapore cents per share.

Outlook:

As we look ahead to FY2024, we remain cautiously optimistic amidst the ongoing recovery from the pandemic. While challenges persist, we are confident in our ability to adapt and thrive in a changing landscape. With a focus on innovation, operational excellence, and customer satisfaction, we are well-positioned to capitalize on emerging opportunities and deliver sustainable value for our stakeholders.

Acknowledgements:

We extend our heartfelt thanks to the Board of Directors for their guidance and leadership.

We would like to further acknowledge the immense contribution of Mr Quek Mong Hua and Mr Lim Jen Howe for their service as Independent Directors.

Our gratitude also goes to our dedicated staff, whose unwavering commitment has been instrumental to our success. To our shareholders, customers, and partners, we express our sincere appreciation for your continued support and trust.

As we embark on the journey ahead, we remain steadfast in our commitment to excellence, innovation, and responsible business practices. Together, we will continue to shape a brighter future for ABR Holdings Limited.

Chua Tiang Choon, Keith

Executive Chairman

Ang Yee Lim

Managing Director