IN-FLIGHT caterer and ground handler Sats on Thursday (Nov 7) announced a second-quarter profit of S$69.7 million for its 2025 financial year, soaring 214 per cent from S$22.2 million in the corresponding year-ago period.
Revenue for the three months ended Sep 30 increased 14.1 per cent to S$1.5 billion, from S$1.3 billion year on year.
The group declared an interim dividend of S$0.015 per share, payable on Dec 6.
It did not propose any dividends in the corresponding year-ago period.
The quarter’s on-year gains were due to business volume growth, rate increases and a three-month revenue catch-up recorded in Q2 FY2025 upon the finalisation of a contract renewal, said Sats.
Its gateway services revenue gained 10.3 per cent on-year to S$1.1 billion, as cargo market growth was supported by greater e-commerce demand and sea freight disruptions due to the Red Sea crisis.
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Food solutions revenue, meanwhile, rose 28 per cent year on year to S$352.8 million, due to higher demand for in-flight meals as travel recovered.
Sats’ expenditure excluding depreciation and amortisation grew 9.9 per cent to S$1.2 billion year on year, in tandem with increased business volume.
The expenditure for Q2 FY2025 also included an unrealised foreign exchange loss of S$21.6 million, mainly due to the translation of US dollar and euro intercompany loan balances at the end of the quarter.
Despite this, however, the group’s operating profit doubled to S$127.2 million, from S$64.1 million in Q2 FY2024.
Its operating profit margin improved to 8.8 per cent from 5 per cent, as revenue growth outpaced higher expenditure.
For the first half of FY2025, the group returned to the black with a profit of S$134.7 million, compared to a loss of S$7.8 million in the year-ago period.
This translates to an earnings per share of S$0.09 for the six months, compared to a loss per share of S$0.005 previously.
H1 revenue was S$2.8 billion, up 14.8 per cent from S$2.5 billion year on year. The improvement was attributed to the scale leverage derived from a higher business volume, as well as rate increases from customers.
The group expects the positive momentum to continue into the next quarter as demand for travel and cargo reaches its seasonal year-end peak.
Kerry Mok, Sats president and chief executive, said that the group had signed new strategic partnerships in Q2 to maintain its competitive advantage, as well as restructured its gateway services business in the Asia-Pacific. He added: “We are pleased with the progress of our integration and the sustained improvements in operating results. This quarter’s good performance is further proof that our strategy is delivering.”
Shares of Sats ended 0.7 per cent or S$0.03 lower at S$3.98 on Thursday, before the announcement.
