ABR Holdings Limited: 1H 2025 Financial Results Analysis

ABR Holdings Limited, listed on the Singapore Exchange, has released its condensed interim financial statements for the six months ended 30 June 2025. The company operates in the food and beverage sector, with additional activities in property investment. This analysis covers the key financial metrics, trends, dividend actions, and notable corporate events disclosed in the report.

Key Financial Metrics

Historical Performance Trends

ABR Holdings reported a solid 8.0% year-on-year increase in revenue for 1H2025, driven mainly by new outlet openings in both FY2024 and 1H2025. However, gross profit margin declined from 41.8% to 39.1% due to higher cost of sales, notably increased food and staff costs as the business expanded. Net profit attributable to owners rose 34.6% year-on-year, and earnings per share improved by a similar margin. The company maintained its interim dividend at 0.25 cents per share.

Dividends

The company declared an interim dividend of 0.25 cents per share for 1H2025, unchanged from the same period last year. The final dividend for FY2024 was 1.25 cents per share (FY2023: 1.0 cent per share). Dividend payout dates and books closure dates will be announced later.

Exceptional Earnings or Expenses

• Other income increased significantly to S\$2.4 million from S\$1.4 million, attributed to higher government grants and fair value gains on financial assets.
• Other expenses in 1H2025 were mainly due to impairment allowance on loans to a joint venture, while 1H2024 saw plant and equipment write-offs and one-off closure-related costs.
• Share of results from equity-accounted investees jumped to S\$1.5 million from S\$0.9 million, mainly due to the performance of Malaysian associated companies in the property business.

Related Party Transactions and Directors’ Remuneration

• Key management personnel received S\$1.55 million in salary, fees, and benefits-in-kind, with an additional S\$71,000 in defined contribution plan contributions for 1H2025. Close family members of key personnel were paid S\$154,000 in salary and S\$23,000 in contributions.
• No general mandate for Interested Person Transactions was obtained.

Asset Revaluation and Property Segment Update

• Investment properties were valued at S\$28.4 million (net carrying value) as at 30 June 2025. The latest valuation, as at 31-Dec-24, did not result in any material impairment. The company uses Level 3 (unobservable inputs) for fair value measurement and engages independent professional valuers annually.
• Baywind Residences, the Singapore JV residential development, received its Certificate of Statutory Completion on 30 June 2025. Malaysian associated company Sering Manis Sdn Bhd completed a land sale in 1H2025. The Pavilion Square project in Malaysia has started sales and construction, with progressive revenue and profit recognition.

Cash Flow and Capital Structure

• Net cash generated from operating activities was S\$11.7 million, with S\$2.9 million used in investing activities (mainly for property, plant, and equipment), and S\$9.2 million used in financing activities, including dividend payments and lease liability repayments.
• Cash and cash equivalents stood at S\$25.4 million at period end, a slight decrease from S\$25.6 million a year ago.
• Total borrowings increased in the short term (S\$5.1 million vs S\$2.3 million at end-2024), but non-current borrowings declined slightly, reflecting a shift in debt structure and increased lease liabilities as more outlets were opened.

Chairman’s Statement

Food and Beverage (“F&B”)
The Group foresees continued challenges in the F&B sector stemming from elevated operating costs, tight labour market and heightened competition, all of which are expected to impact our operations and profitability. Furthermore, global trade tensions and macroeconomic uncertainties may influence consumer sentiment and spending behaviour.

To address these challenges, the Group remains resilient in managing operational costs and strengthening operational capabilities, stays focus on innovation and enhancing customer experiences. The Group will continue to explore new concepts and strategic expansion opportunities for long-term growth and competitive positioning.

Property
The Group’s property investment segment continued to progress steadily. Its Singapore joint venture residential development, Baywind Residences, received its Certificate of Statutory Completion on 30 June 2025. Its Malaysian associated company, Sering Manis Sdn Bhd, completed a land sale in 1H2025. The Pavilion Square project in Malaysia, which the Group invested through an associated company, Goodwill Influx Sdn Bhd, commenced sales and construction in 2H2024, with revenue and profit recognised progressively over the periods.

The Group continues to track the developments in the Singapore property market and will pursue new development projects with strategic partners as opportunities emerge.

Tone: The Chairman’s message is cautious but constructive, acknowledging industry headwinds while highlighting resilience, operational focus, and targeted expansion.

Other Notable Corporate Actions & Events

• No share buybacks, dilutions, or secondary placements were conducted during the period.
• No significant legal disputes, natural disasters, or major macroeconomic policy changes were disclosed in the report.
• No fundraising, IPOs, or significant asset sales were mentioned except for property development activities through associates.
• No subsequent events requiring financial adjustments were reported post-June 2025.

Outlook and Conclusion

Overall, ABR Holdings Limited’s financial performance for 1H2025 appears neutral to slightly positive. Revenue growth was solid (+8.0%), and net profit attributable to owners improved by 34.6% year-on-year. However, rising costs have pressured gross margins, and management expects these challenges to persist due to industry-wide cost inflation, labour constraints, and a competitive environment. The property segment remains a source of growth and stability, with successful project completions and ongoing developments. Cash flow generation is solid, and the company maintains a robust cash position.

Investor Recommendations

• If you currently hold ABR Holdings shares:
  Maintain your position, especially if you value stable dividends and are comfortable with moderate growth potential. Monitor margin trends and cost pressures in the F&B segment, as well as developments in the property investment segment, which could provide upside. The company’s strong cash position and steady dividend support downside risk.
• If you do not currently hold ABR Holdings shares:
  Consider initiating a small, speculative position if you seek exposure to Singapore’s F&B and property sectors and are prepared for cyclical headwinds. Wait for further margin improvement or evidence of successful cost management before committing to a larger investment.

Disclaimer: This analysis is based solely on information disclosed in ABR Holdings Limited’s 1H2025 interim financial report. It is not financial advice. Investors should consider their own investment objectives and risk tolerance and seek professional advice before making investment decisions.

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