This dual structure has enabled the group to navigate sector cycles while seizing opportunities across both segments.
In FY2024 ended Dec 31, 2024, ABR’s F&B operations generated revenue of $135.5 million, increasing from $116.8 million last year, reflecting improved operational efficiencies and a normalisation of post-pandemic consumer behaviour.
Swensen’s remains the flagship brand, with a presence in the city-state and Malaysia.
Tip Top, Chilli Padi and Seasons complete the portfolio; while Fiz, a recent addition, marks the group’s foray into fine dining.
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Opened in 2023, Fiz earned a Michelin star for its modern take on Southeast Asian cuisine.
Rather than pursue aggressive store expansion, ABR has concentrated on optimising revenue per outlet, driving product innovation and enhancing service quality.
In an interview with The Edge Singapore, Teo Tong Loong, CEO of Swensen’s Singapore and the group director of business development of ABR Holdings, says: “The F&B space in Singapore is very competitive. It is not easy to chart out a growth plan; we will quickly face diminishing returns if we just expand aggressively. ”
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“Our core value is to create and drive value for the customer. We have been successfully doing that for our brands for more than three decades,” he says, adding that trends come and go, which the group will still ride on, but the core value will always stay, and that is what fosters a sense of loyalty and trust in consumers.
Delivery and takeaway habits that surged during the Covid-19 period have remained a significant channel. While volumes have normalised, delivery revenue still represents a low double-digit percentage of sales, above pre-pandemic levels.
Additionally, the group’s catering business, Chilli Padi, has contributed to its growth.
Having capitalised on market consolidation during the pandemic, ABR has gained market share while maintaining quality, a key differentiator in a segment often characterised by price competition and inconsistent service standards.
Challenges impact profitability
While ABR’s F&B segment has grown and remains profitable, the group is mindful that the challenges faced by the F&B industry persist. Increased operating costs, a tight labour market and intense competition continue to impact operations and profitability.
“Despite these challenging market conditions, we remain resilient and proactive in our approach to cost management, innovation, refining operational processes and enhancing customer satisfaction. The group will continue to explore new concepts and pursue expansion opportunities concurrently. These initiatives will contribute to the group’s future growth and further strengthen its competitiveness,” it said in its results statement.
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Teo further elaborated that while rentals have been rising, this has always been a historical trend. “We have to manage it. Everyone else will face it too. It will affect the cost structure, but we have to balance the equation by growing revenue, increasing efficiency in human resources and managing food costs,” he adds.
Less visible to the public but increasingly important to the group’s bottom line is ABR’s property division.
In FY2024, the segment, which is classified under the share of profits of equity-accounted investees, increased by $0.3 million to $1.4 million.
In addition to the profit contribution from the Baywind Residences project, the group’s Malaysian associated companies reported reduced losses, partly attributable to the sales launch of the Pavilion Square project in 2HFY2024.
The group’s property businesses are joint ventures and related companies that do not take up a share of the overall revenue.
The group’s property activities are bifurcated into asset ownership, where assets are leased out to generate rental income, and property development, where ABR partners with other firms on a project basis.
The former segment provides recurring revenue, while the latter offers upside from capital appreciation.
Recent acquisitions include a row of shophouses along Club Street, an area that has seen a revival in activity and value. The group also holds assets in Malaysia, including in Johor, Genting and Kuala Lumpur. These were acquired over various investment cycles, consistent with the group’s long-term, value-based investment philosophy.
“The property segment is not new to us; we’ve been involved in landbanking and development in Malaysia for many years. Our approach has always been fundamentals-driven, with a focus on long-term capital appreciation and yield,” says Teo.
While ABR typically does not operate the properties it owns, it collaborates with partners to maximise asset value. The group has stated that it continually reviews potential transactions, proceeding only when clear investment merit is evident.
ABR maintains a cautious yet constructive outlook for the future. On the F&B front, the group is investing in product development and customer experience while preserving its legacy positioning.
With the new Swensen’s Unlimited concept gaining traction and catering showing signs of further growth, the group expects the F&B segment to remain a stable contributor.
Similarly, the property division will continue to adopt an opportunistic and disciplined approach.
Although no new launches have been announced, the group has indicated that several investment opportunities are currently under review.
ABR also sees potential upside from the ongoing development of the Johor-Singapore Special Economic Zone, though its immediate impact is yet to be realised.
