SATS’ net profit up 89.3% to S$31.8m in Q3 FY2024

Recovery of aviation food and flight volumes helped push up profits.

SATS’ saw its profits rebound in the first nine months of its current fiscal year, driven by higher aviation food and flight volumes, as well as a recovery of cargo volume.

Core PATMI– or net profit attributable to owners of the company– rose 89.3% to S$31.8m in Q3 FY2024, almost double the S$16.8m reported in the previous quarter. For the first nine months of FY2024, Core PATMI was S$31.2m, a reversal from the S$3.7m loss logged for 9M FY2023.

Operating profit for Q3 FY2024 was S$85.8m, 31% higher than the previous quarter. Group revenue rose by 6.5% to S$1.4b during the same period.

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Basic earnings per share is 1.6 Singapore cents for the first nine months of the fiscal year.

SATS attributed its stronger performance to volume improvements, which received a boost from strong seasonal demand. As at December 2023, aviation food and flight volumes have reached 97% and 86%, respectively. 

Cargo volume has also recovered to 99% of pre-COVID levels, according to SATS.

For the first nine months of the fiscal year, group revenue has tripled (200.4%) to S$3.8b, driven primarily by the consolidation of Worldwide Flight Services (WFS) after its acquisition by SATS on 3 April 2023.

WFS’ revenue in the first nine months of FY2024 was S$2.2b; excluding WFS, SATS’ standalone revenue still increased by 27.8% to S$1.6b.

SATS Food Solutions revenue, also rose by 27.6% to S$810.6m during the same nine month period; whilst the Gateway Services revenue grew 28% to S$824.7m.

Looking forward, SATS touted an IATA expectation that the aviation industry will return to profitability in the second half of 2024.

“Despite prevailing headwinds, including inflationary costs, wage pressures, and geopolitical factors, we remain focused on managing costs, leveraging operational synergies, winning new contracts and strengthening our financial position. We believe this will lead to continuing improvement in financial results, delivering sustainable long-term growth and performance,” SATS said in a press release announcing its latest financial results.

SATS shared that it has recently secured contracts with Etihad across 12 prime cargo airports; and Air China Cargo in Los Angeles.