CATERING and ground handling company Sats posted a 123.5 per cent increase in net profit to S$70.4 million for the quarter ended Dec 31, 2024, from S$31.5 million a year earlier.
This came as revenue over the same period rose 12.5 per cent year on year to S$1.5 billion, from S$1.4 billion.
In its Q3 business update released on Friday (Feb 21), the company attributed the increase in net profit to operating leverage derived from higher business volume and rate increases from customers.
Revenue for gateway services climbed 10.1 per cent year on year to S$1.2 billion, which reflected favourable market conditions and continued market share gains.
“Our cargo volumes exceeded Iata’s (International Air Transport Association) global growth benchmarks, supported by broad-based demand and the shift of some ocean freight to air cargo due to Red Sea disruptions,” Sats said.
Meanwhile, food solutions revenue grew 21.1 per cent year on year to S$356.7 million, driven by increased demand for inflight meals.
In Q3, the company noted that free cash flow also improved to S$118.1 million, from S$44.7 million a year ago.
In its outlook, Sats said that while tariff increases could negatively impact trade flows, it is confident it will have the resilience to navigate the challenges. Chief executive Kerry Mok said: “With our global network, we are in a good position to support our customers in their response to short-term adjustments in this period of volatility while keeping long-term opportunities in mind.”
Shares of Sats closed at S$3.30, up 0.3 per cent or S$0.01 on Friday before the results were released.
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