SATS Q4 profit slips 1.8%; slowdown in food solutions offset by pickup in gateway services

FOURTH quarter net profit at in-flight catering service provider SATS inched down 1.8 per cent from a year earlier to S$65.4 million, with a slowdown in the food solutions business offset by a stronger showing in gateway services.

Revenue for the three months ended March 31 was S$423.5 million, down 0.5 per cent over the same period last year.

This came as turnover in the food solutions business declined 2.4 per cent to S$228.3 million, while gateway services' revenue grew 1.7 per cent to S$194.7 million despite the sale of SATS HK Limited.

The quarter also recorded a non-operating income of S$8.5 million posted by the group's Japan subsidiary, TFK Corporation, for the disposal of its Brazil unit, Tokyo Flight Kitchen Restaurantes and its investment property.

Earnings per share for the quarter came in at 5.9 Singapore cents, from six Singapore cents a year earlier.

Net asset value per share was S$1.464 as at March 31, from S$1.439 on the same date last year.

For the full year, the company recorded net profit of S$261.5 million, up 1.4 per cent. Revenue was 0.3 per cent down at S$1.72 billion.