SATS net profit rises
Singapore-based SATS announced its fiscal year net profit for 2015/2016 rose nearly 13 percent to US$221 million despite a decline in total revenue of 3.1 percent to US$1.7 billion. The catering and ground handler said fourth quarter net profit fell 1.7 percent to US$50.7 million with fourth-quarter revenue slipping 1.8 percent to US$418 million.
SATS has two basic divisions – its Food Solutions division and its Gateway Services division. For the fourth-quarter, Food Solutions revenue fell 7.4 percent year-on-year due to a weaker Japanese yen the company reported with for the fourth quarter coming in at US$232 million and total revenue for the fiscal year falling 8 percent to US$967 million.
The Gateway Services division saw fourth quarter revenue rise 6.2 percent to US$183.8 million and rise 4.1 percent to US$725.9 million for the full fiscal year.
Alex Hungate, SATS’s chief executive, said in the company’s earnings statement that “our financial performance in FY15-16 was strong, considering the challenging economic environment and intense competition. Strategic investment in technology has helped us to improve productivity and enhance services while scaling the business. We generated underlying revenue growth of 3 percent and achieved 12.7 percent increase in profit.
“Our aviation business in Singapore remains a pillar of strength for SATS. In line with our vision to feed and connect Asia, we are also leveraging new opportunities created by the growth of tourism in the region as well as the demand for safe, high quality food from the burgeoning urban populations of Asia to pursue non-aviation business and expand beyond Singapore.”