FOOD solutions and gateway services provider SATS on Monday (May 30) reported earnings of S$7.2 million for the second half of FY21-22 ended March, compared to a net loss of S$2 million in the corresponding period a year ago.

Earnings per share rose to 0.6 Singapore cent for H2, compared to a loss per share of 0.2 cent in the year-ago period.

H2 revenue was up 14.7 per cent to S$607.3 million, as travel continued to recover with the easing of border restrictions.

Food solutions revenue increased by 10.8 per cent to S$330.6 million, while gateway services revenue grew 19.5 per cent to S$275.2 million.

However, expenditure soared 29.8 per cent to S$653.9 million as the group ramped up operations to support the travel recovery.

The rise in expenses was largely driven by increased headcount, higher contract services and tapering government grants. Staff costs jumped by 56.5 per cent or S$110.9 million in the period.

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The group recorded an operating loss of S$46.6 million in H2 due to higher costs and lower government grants.

Excluding government reliefs, the group said net profit attributable to owners of the company would be a loss of S$46.6 million for H2.

The H2 results bring SATS’s full-year earnings up 125.9 per cent to S$20.4 million, with revenue rising 21.3 per cent to S$1.2 billion.

“SATS will continue to grow new revenue streams and to strengthen capabilities to ensure the growth and sustainability of our businesses across the value chain,” said SATS president and chief executive officer Kerry Mok.

SATS did not recommend a final dividend for FY21-22. The board said it “would not be prudent” to pay a final dividend as SATS incurred a full-year loss excluding government reliefs.

“This will allow the company to preserve cash as we ramp up operations to support our customers as aviation volumes resume, and to pursue new opportunities outside of aviation,” it said in a bourse filing.

Shares of SATS closed 0.7 per cent or S$0.03 higher at S$4.54 on Monday, before the announcement.