Business

Sats' Q4 net profit up 31.4% to hit $66.6 million


Ground-handling and in-flight catering provider Sats logged robust fourth-quarter growth but could be facing a more challenging year amid headwinds in the aviation industry.

Net profit for the three months to March 31 climbed 31.4 per cent to $66.6 million, up from $50.7 million in the same period a year earlier, it said yesterday.

The surge was fuelled by a 2 per cent increase in revenue to $425.8 million.

The contribution from the food solutions business segment rose by 0.7 per cent to $233.9 million, while turnover from its gateway services arm increased 3.6 per cent to $190.4 million.

The share of after-tax profits from associates and joint ventures jumped 146.2 per cent in the quarter to $28.8 million.

This was mainly due to the recognition of the $15 million negative goodwill arising from the increased stake in a long-term investment in in-flight caterer Evergreen Sky Catering from 15 per cent to 25 per cent.

But operating profit for the quarter fell 7.8 per cent to $45.8 million due to an increase in most expense categories.

These increases were mainly driven by higher staffing costs but offset in part by the fall in the cost of raw materials and improved productivity arising from the use of technology and automation.

Fourth-quarter earnings a share came in at six cents, compared with 4.6 cents previously.

Net asset value a share was 143.9 cents as at March 31, up from 134.4 cents a year earlier.

Net profit jumped 16.9 per cent to $257.9 million for the full year, while revenue was up 1.8 per cent to $1.7 billion.

The group recommended a final dividend of 11 cents a share, bringing the total dividend to 17 cents a share, up from 15 cents last year.

Sats shares closed five cents, or 0.95 per cent, up at $5.29 yesterday.

AVIATION INDUSTRYFinancestock market