SINGAPORE (Feb 13): SATS, the provider of gateway services and food solutions, announced that its 3Q19 earnings have increased by 3.5% to $68.9 million, compared to $66.6 million in 3Q18.
This brings 9M19 earnings to 198.5 million, 1.2% higher than $196.1 million in 9M18.
Revenue for 3Q19 was 5.5 % higher at $464.0 million from $439.8 million a year ago, due to higher contribution from the group’s food solutions and gateway services.
Revenue from food solutions rose 5% y-o-y to $252.4 million with growth registered in all core catering subsidiaries in Singapore, Japan and China. Gateway services’ revenue increased by 6.2% y-o-y to $211.3 million with increased contributions from Changi Airport Terminal 4 operations and cruise terminal operations at Marina Bay Cruise Centre Singapore.
Total expenditure increased by 6.6% to $398.7 million from $374.1 million last year, due to higher costs recorded in all expenditures as a result of volume growth.
Hence, operating profit for 3Q19 was slight lower by 0.6% y-o-y at $65.3 million.
Share of results of associates/joint ventures came in 51.1% higher at $20.7 million, compared to $13.7 million in the previous year, with higher contributions from gateway services’ associates/joint ventures.
During the quarter, the group recorded other non-operating loss of $0.2 million, compared to other non-operating income of $4.6 million in the same period a year ago.
As at end-Dec, the group’s cash and cash equivalents stood at $270.7 million.
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 group. On the outlook, SATS believes that it is well-positioned to extend its market leadership in Asia Pacific.
In a media release issued on Wednesday, SATS says, “We continue to enhance the sustainability of our business by digitalising our operations, developing our people, and building new capabilities while seeking acquisitions that can help us accelerate the implementation of our strategy to feed and connect Asia.”
Shares in SATS closed 2.47% higher at $4.98 on Wednesday.
