SATS reports higher Q4 and full-year profits

FOOD solutions provider SATS reported on Thursday that its net profit for the fourth quarter ended March 31, 2015, rose 21.1 per cent to S$51.6 million, compared to S$42.6 million in the year-ago period.

Revenue for the quarter fell to S$425.1 million from S$434.6 million. Revenue from Food Solutions dropped by S$15.4 million or 5.8 per cent to S$250.9 million, largely due to the weaker result from its Japan subsidiary, TFK Corporation, and the divestment of an Australian subsidiary, Urangan Fisheries Pty Ltd, in July 2014. Revenue from its Gateway Services rose S$5.9 million, or 3.5 per cent, to S$173 million.

For the full year, net profit rose 8.5 per cent to S$195.7 million from S$180.4 million, while revenue declined by S$33.5 million or 1.9 per cent to S$1.75 billion.

Cash and short-term deposits increased by S$70.1 million to S$410.9 million as at March 31, 2015.

SATS said the business environment remains challenging with lower economic growth, competitive pressures in the regional aviation sector and rising manpower costs. However, it expects the demand for travel, high quality food and e-commerce will continue to grow, driven by the fast pace of urbanisation in Asia.

The group is looking to launch new ventures that will bring valuable, innovative products and services to the market.