SATS Q1 profit up 14.5% at S$49.6m

Groundhandler and food solutions provider SATS reported a 14.5 per cent rise year on year in net profit to S$49.6 million for the first quarter ended June 30, 2015.

This was despite revenue falling 4.2 per cent to S$416.9 million, due to an 8.2 per cent reduction in its Food Solutions revenue, which was partially offset by a 2 per cent increase in Gateway Services revenue.

Earnings per share came to 4.5 Singapore cents, up from 3.9 cents a year earlier.

Lower expenses helped contribute to the S$44 million in operating profit, up from S$39.7 million in the corresponding quarter a year prior.

"Competition between airlines in Asia continues to be intense amid relatively low growth in air traffic in the near term," said SATS. "Despite slower economic growth and rising manpower costs, the structural growth prospects of Asia remain strong with rapid urbanisation and growth of the middle class."

It added that it is making good strides with its efforts to boost productivity through scale and connectivity, as well as by launching new ventures to support future growth.