SATS reports fiscal year swung to net profit on air-travel recovery

SATS Food building near Changi Airport in SingaporeSATS Food building near Changi Airport in Singapore

SATS reported Monday its fiscal year swung to a net profit of S$20.4 million from a year-earlier net loss of S$78.9 million on a recovery in travel.

“Borders reopening and pent-up demand have led to a continuing surge in travel volume although uncertainty remains due to potential resurgence in infection. SATS is responding swiftly by ramping up our operations and working across the value chain to mitigate the impact of cost inflation,” the company said.

Revenue for the 12 months ended 31 March was S$1.18 billion, up 21.3 percent on-year, the company said in a filing to SGX.

“Both Food Solutions and Gateway Services recorded marked improvements in revenue growth,” SATS said, citing increased volumes for Food Solutions in all its market segments.

“Sustained cargo growth, increased flights handled, the resumption of ship calls and expansion of security services into non-travel related segments increased Gateway Services revenue,” SATS said.

Core profit after tax and minority interests (PATMI), which is net profit excluding one-off items, was a loss of S$8.5 million for the fiscal year, narrowing from a core PATMI loss of S$23.9 million in the previous year, SATS said.

SATS said it wouldn’t pay a final dividend as it incurred a full-year loss excluding government relief.

In its outlook, SATS noted that as of end-March, cargo had reached pre-pandemic volumes, while flights and passengers handled are at 44 percent and 25 percent, respectively, and meals served reached 59 percent of pre-pandemic levels.