SINGAPORE (Feb 9): SATS, the gateway services provider, reported 3Q earnings of $65.1 million, 7.4% higher than a year ago.
Operating profit rose 7% to $66.7 million.
For the nine months ended Dec, earnings rose 12.6% to $191.3 million.
Group revenue for the 3Q ended Dec was comparable to a year ago at $440.9 million.
Revenue from Food Solutions declined 1.8% to $246.4 million but revenue from Gateway Services grew 2.2% to $193 million.
Group expenditure decreased 1.3% to $374.2 million, due to reductions in most expense categories except staff costs and depreciation and amortisation charges.
Staff costs rose $2.6 million due mainly to service increment and higher accrual of staff expenses.
Cost of raw materials declined $5.8 million in view of the lower revenue for Food Solutions.
Share of after-tax profits from associates/joint ventures increased 9.5% to $12.7 million, with higher contributions from both Food Solutions’ and Gateway Services’ divisions.
As at end Dec , the group had total assets of $2.2 billion.
SATS says the operating environment continues to be challenging with airline margins under increasing pressure.
“In line with our strategy of feeding and connecting Asia, we are expanding our inflight catering facilities in Singapore to handle larger batch sizes for the expected increase in volume at Changi Airport. We are also extending our cargo network into the Middle East with projects both in Dammam, Saudi Arabia and Muscat, Oman,” says SATS.
Shares of SATS closed 9 cents lower at $4.98.
