[SINGAPORE] In-flight caterer Sats on Friday (May 23) reported net profit of S$38.7 million for the three months ended Mar 31, 2025, gaining 18.3 per cent from S$32.7 million in the corresponding year-ago period.
This indicates earnings per share (EPS) of S$0.026 for the quarter, compared with S$0.022 in Q4 FY2024.
Revenue for the fourth quarter was S$1.5 billion, up 10.4 per cent year on year from S$1.3 billion. This was driven by continued business volume growth and rate improvements, said Sats in a media release.
The group has proposed a final dividend of S$0.035 per share, which will be paid on Aug 15, after shareholder approval. The book closure date is Aug 1.
This is higher than the final dividend of S$0.015 per share in the corresponding year-ago period.
The group’s gateway services segment revenue for the quarter rose 10.1 per cent on-year to S$1.2 billion, reflecting both favourable market conditions and continued market share gains.
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The segment refers to Sats’ airport terminal services, such as airfreight handling and baggage handling services, as well as cruise terminal and trucking services.
“Our cargo volumes outperformed the International Air Transport Association’s global growth benchmarks, supported by broad-based demand and the redirection of certain ocean freight to air cargo due to ongoing Red Sea disruptions,” said Sats.
Meanwhile, the food solutions segment revenue increased 11.4 per cent to S$331.1 million, propelled by stronger demand for inflight meals amid the continued recovery in global travel.
For the second half ended Mar 31, profit climbed 70.2 per cent to S$109.1 million, from S$64.1 million. The latter figure has been reclassified, as the group changed the classification of operating expenses in the condensed interim consolidated income statement to provide better clarity and understanding of its expenses.
The profit translates to an EPS of S$0.073, compared with S$0.043.
Revenue for the six months was S$3 billion, up 11.4 per cent from S$2.7 billion.
On a full-year basis, the group reported profit of S$243.8 million, soaring more than four times from S$56.4 million a year ago. Revenue came in at S$5.8 billion, gaining 13 per cent from S$5.1 billion a year ago.
Commenting on the results, Sats president and chief executive Kerry Mok said: “We captured S$103 million in Ebitda (earnings before interests, taxes, depreciation and amortisation) integration synergies in just two years, driven by the strength of our platform and disciplined execution.”
He highlighted “notable customer wins across (Sats’) network, including multiple new cargo and ground handling contracts secured with key customers such as Air India, Emirates and DHL in major airports”.
Mok added that the group recently announced a phased investment of over S$250 million for Singapore Hub to upgrade ground operations and cargo handling infrastructure.
“This reflects our continued focus on operational excellence and our role in strengthening the broader Changi Airport ecosystem,” he said.
Shares of Sats ended flat at S$2.98 on Friday.
