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SATS Q3 net profit rises 3.5% on growth in food solutions, gateway services
SATS saw third-quarter net profit rise 3.5 per cent to S$68.9 million, following growth in food solutions and gateway services, and higher contributions from its associates and joint ventures.
On Wednesday, Sats, a ground handler and in-flight catering services provider, announced that revenue for the third quarter grew 5.5 per cent to S$464 million, compared to a year ago. This came on the back of increased volume growth in food solutions, with growth across all its core catering subsidiaries in Singapore, Japan and China.
Revenue was also boosted by gateway services, which rose on the back of higher contributions from Sats ground services at Singapore Changi Airport’s Terminal 4 and cruise terminal operations at Marina Bay Cruise Centre Singapore.
Furthermore, shares of profits from associates and joint ventures in Q3 was S$20.7 million, up 51.1 per cent on year - particularly due to a S$5.8 million gain from from DFASS SATS Pte Ltd’s disposal of business to KrisShop Pte Ltd.
Earnings per share rose from 6 Singapore cents a year ago, to 6.2 Singapore cents this quarter.
For the nine months ending Dec 31, 2018, Sats saw net profit increase 1.2 per cent to S$198.5 million. Revenue gained 4.3 per cent year-on-year to S$1.36 billion, as food solutions and gateway services volumes grew.
Sats said that despite the slowdown in the global economy, “increasing volumes in the aviation industry and strong demand for convenient food in Asian cities are creating growth opportunities for the company.
China is also a “key market...for scale and connectivity” and it has invested in ground and cargo handling, and catering operations at the new Daxing International Airport in Beijing.
Sats’ counter closed up 2.47 per cent or S$0.12 to S$4.98, before the results were announced.