SATS reports first-quarter net profit rose 11.5 percent on-year as aviation volumes rise

Singapore five-dollar note Photo by Leslie Shaffer

SATS reported on Thursday that its fiscal first quarter net profit rose 11.5 percent on-year to S$63.9 million, with the company pointing to continued growth in aviation volumes, revenue growth in Japan and at the Singapore cruise terminal and improved productivity.

Revenue for the quarter ended 30 June rose 3.0 percent on-year to S$439.4 million, it said in a filing to SGX after the market close on Thursday.

The food-services revenue rose 2.7 percent on-year in the quarter to S$239.5 million, while gateway services’ revenue increased 3.4 percent to S$199.6 million, it said.

The company issued a generally positive outlook.

“Despite the threat of global trade uncertainties potentially affecting cargo volumes, we expect passenger volumes in Asia to grow. At the same time, rapid urbanisation in the region will drive demand for safe, high-quality food, and more cruise ships will be deployed in Southeast Asia to keep pace with burgeoning consumer interest,” SATS said. “However, pricing pressures will remain. Our investments in technology and digitalisation are increasing productivity and enhancing our services.”

The company provides gateway services, including airfreight handling, passenger services, baggage handling, aviation security services and aircraft interior and exterior cleaning as well as cruise center management; its food services include airline catering, institutional and
remote catering, aviation laundry, food distribution and logistics.

In a separate SGX filing on Thursday, SATS said its wholly owned subsidiary SATS Investments and Turkish Airlines have agreed to terminate their memorandum of understanding related to the provision of in-flight catering services to Turkish Airlines and other airlines at the Istanbul New Airport.

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