SATS has reported a net loss of $2.0 million for the 2HFY2020/2021 ended March, from earnings of $53 million in the corresponding period the year before.
Excluding the impairment charge made for the current financial period, the group would’ve registered earnings of $21.4 million.
The group, however, would have reported a loss of $109.2 million without government grants and reliefs of $119.7 million during the period.
For the FY2020/2021, the group saw a net loss of $78.9 million, from earnings of $168.4 million in the FY2019/2020.
Without government grants and reliefs of some $271.8 million, SATS would have seen a loss of $320.8 million.
Loss per share for the 2HFY2020/2021 and FY2020/2021 stood at 0.2 cent and 7.0 cents respectively.
2HFY2020/2021 revenue fell 45.9% y-o-y to $529.5 million due to the impact of travel restrictions.
Food solutions’ revenue fell 46.6% y-o-y to $298.3 million while revenue for Gateway Services fell 45.1% y-o-y to $230.3 million in the 2HFY2020/2021.
SEE: SATS ready for take off on vaccine delivery flights
Group expenditure fell 42.4% y-o-y to $503.6 million due to efforts to reshape the cost base of the group and government support reliefs.
Operating profit plunged 75.2% y-o-y to $25.9 million, which would’ve been a loss of $93.8 million without government reliefs.
Share of results from associates/joint ventures grew 77% y-o-y to a lower loss of $3.8 million despite the impact of the Covid-19 pandemic on the performance of the group’s aviation associates and joint ventures.
For the FY2020/2021, group revenue fell 50% y-o-y to $970 million due to the fall in demand for air travel and border restrictions since the start of Covid-19.
Revenue from Food Solutions in the full-year fell 46.4% y-o-y to $573.8 million while revenue from Gateway Services fell 55.1% y-o-y to $389.7 million.
This was mitigated by revenue contributions from newly consolidated entities such as Country Foods, Nanjing Weizhou Airline Food Corp and Monty’s Bakehouse UK amounting to $118.9 million.
Group expenditure fell 42.9% y-o-y to $980.1 million after accounting for government reliefs, lower aviation volumes and management efforts to reshape the group’s cost base.
FY2020/2021 operating profit fell 104.5% y-o-y to an operating loss of $10.1 million compared to operating profit of $226.2 million in the FY2019/2020.
Share of result from associates/joint ventures fell from profit of $11.8 million to a loss of $48 million.
The group also reported other non-operating loss of $71.7 million on the impairment made for investments in its associates and joint ventures.
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The group has taken a total of $160 million of credit losses and impairment charges. Some $51 million was accounted for in the previous financial year and $109 million was charged in the current financial year.
No dividend has been reported for the FY2020/2021.
Looking ahead, the rebound of international air travel has been delayed due to new variants of the virus.
As such, the group says it is “innovating to support its aviation customers with products and services that enable them to operate safely, efficiently, and sustainably, both in the current restricted travel environment as well as when volumes recover”.
“While the pandemic continues to restrict travel, SATS will continue to transform by reshaping our aviation services businesses while expanding non-travel related businesses,” says president and CEO Alex Hungate.
As at March 31, cash and cash equivalents stood at $879.8 million.
Shares in SATS closed 11 cents higher or 2.9% up at $3.86 on May 27.
