SATS posts positive PATMI in 3Q after losses of $9.9M in 2Q and $22.5M in 1Q

3Q performance reflects improving business conditions and a seasonal high

Excluding one-off acquisition expenses, nine-month underlying losses would have reduced to $1.8M

OPEX increased YoY due to AAT consolidation, further reduction in government reliefs, ramp up in capacity, higher fuel and utility costs in line with greater business volume and inflation

Singapore, 13 February 2023 – SATS Ltd (SATS) today reported its unaudited results for the third quarter ended 31 December 2022…


GROUP EARNINGS 3Q FY23 (1 October 2022 to 31 December 2022)

Business activities increased on the back of the continued aviation recovery with flight volume reaching 71% of pre-pandemic levels. As such, Group revenue grew $167.9 million, or 54.5% year-on-year (YoY), to $475.7 million. Revenue from Food Solutions rose $66.4 million, or 39.9% YoY, to $232.9 million, while revenue from Gateway Services increased $102.4 million, or 73.0% YoY, to $242.7 million in 3Q FY23 over the same period last year. The consolidation of Asia Airfreight Terminal Co. Ltd (AAT), a subsidiary of the Group effective March 2022, contributed $30.5 million to Gateway Services’ revenue.

Group expenditure increased $159.5 million, or 50.3% YoY, to $476.8 million arising from increased business activities and inflation. Staff costs rose $82.3 million YoY due to the ramp up of hiring in support of increased business activities, coupled with a $23.9 million YoY reduction in government grant support. The rise in the cost of raw materials, licence fees, and company premise and utility expenses was in line with greater business volume, inflation and increased utility tariffs. Depreciation and amortisation in 3Q FY23 increased $17.0 million YoY mainly due to the consolidation of AAT compared to the same period last year. Other costs rose $25.7 million mainly due to higher fuel costs and maintenance expenses and foreign exchange translation losses, coupled with lower government grants.

As a result, the Group recorded an operating loss of $1.1 million. This is an improvement of $8.4 million as compared to the operating loss of $9.5 million in 3Q FY22. Share of results from associates/joint ventures was at $10.2 million, a decline of $1.9 million from $12.1 million in 3Q FY22. Other non-operating loss of $11.3 million comprised mainly the one-off acquisition expenses the Group incurred. Group net profit attributable to owners of the Company (PATMI) was $0.5 million, a YoY decrease of $4.6 million from PATMI of $5.1 million in 3Q FY22. Excluding government reliefs, Group PATMI would have been a loss of $13.7 million, compared to a loss of $33.0 million recorded for the same period last year…

The full release can be found here; the investor pack is here; expect Premium coverage in due course…

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