SINGAPORE (Feb 28): ABR Holdings reported 4Q17 earnings double to $2.5 million from $1.3 million a year ago on higher revenue.
Revenue for the quarter grew 25.6% to $33.7 million from $26.8 million in 4Q16 due to higher contributions from the group’s new F&B business, the Chilli Padi Group.
See: How ABR Holdings is adding spice to its business in a slowing F&B industry
In line with the revenue growth, cost of sales increased by 28.9% to $18.4 million from $14.3 million a year ago.
Selling, distribution and outlet expenses grew 14.6% to $8.5 million due to an increase in rental expenses arising from more operating outlets, as well as the inclusion of logistics expenses from the new F&B business.
Administrative expenses grew 22.9% to $4.2 million as a result of including expenses of the new F&B business, as well as professional fees incurred from its acquisition.
The latest set of 4Q results brings ABR’s FY17 earnings to $6.2 million, up 15% from $5.4 million in FY16.
An interim and final dividend of 1 cent and 1.5 cents, respectively, has been declared for the period under review, unchanged from a year ago.
In response to the ongoing and expected challenges in the current F&B industry, ABR Holdings says it intends to focus on improving cost efficiency, in particular on procurement of raw materials and manpower utilisation.
On its property business, the group is currently awaiting shareholder approval for its acquisition of a 50% interest in Indonesia’s BLR, which owns Bintan Lagoon Resort in Bintan.
See: ABR Holdings to acquire 50% stake in Bintan Lagoon Resort for $65 mil
Shares in ABR closed flat at 81 cents on Wednesday.
