SATS' revenue dipped 0.3% to $1.72b

Earnings from food solutions fell 2.7% to $946.6m.

Revenue for SATS dipped 0.3% to $1.72b YoY in March 2018. The group’s revenue could have increased 1.5% if not for the impact of the deconsolidation of their SHK unit in November, according to a company report.

Revenue from food solutions fell 2.7% to $946.6m whilst gateway services recorded a 2.9% revenue increase at $776.5m propelled by the strong passenger and cargo demand.

SATS’ aviation arm contributed 86.3% or $1.48b of the total revenue whilst $236b came from SATS Food Services group, Food and Allied Support Services Corporation group, SATS-Creuers Cruise Services, SATS Yihai Kerry, and other corporate services.

The firm’s lower revenue led to a 1.8% slip in operating profit from $230.6m to $226.4m, making the operating profit margin dip from 13.3% to 13.1%/ Meanwhile, profits from associates and joint ventures grew 9.2% YoY to $71.2m as SATS joined in several overseas deals.

Non-operating income increased by $10.8 m YoY due to assets sales worth $15.5m as well as write back of $4.5 million for the earn-out consideration. SATS also saw a 1.4% increase to $261.5 million in profit attributable to owners of the company.

Earnings from Singapore that totalled $1.4b became the firm’s top revenue provider whilst TFK in Japan followed with revenue worth $239.4m. Revenues from other units fell 29% to $62.2m.