Airport services provider SATS reported profit attributable to owners of the company (PATMI) of $6.4 million for 1QFY2022 ended June, reversing from its loss of $43.7 million in the same period last year.
Revenue improved 31.6% y-o-y to $275.6 million as travel revenue rose 41.9%, while non-travel related revenue increased 22.6%.
See: SATS reports loss of $78.9 mil for FY20/21
Revenue from SATS’ Food Solutions rose $11.4 million or 8.4% y-o-y to S$147.3 million, while Gateway Services’ revenue improved $55.4 million or 77.4% y-o-y to $127 million.
During the period, the Group has generated non-travel related revenue of $127.6 million, which includes Covid-19-related assignments carried out in Singapore. Non-travel related revenue has grown by 22.6% y-o-y, and accounted for 46.3% of Group revenue for the quarter.
Group expenditure was higher by 10.9% y-o-y, amounting to S$272.1 million. Staff costs increased $18.1 million, primarily due to higher contract services resulting from the implementation of additional safety measures at Changi Airport, increased business volumes, and lower grant support.
The cost of raw materials, licence fees, and other costs rose compared to the previous corresponding quarter, in line with higher revenue.
The Group reported an operating profit of $3.5 million this quarter, reflecting an increase of $39.5 million from an operating loss of $36 million recorded this quarter last year.
Share of losses from associates/joint ventures improved 96.2% y-o-y to $1.2 million, as associates across the region gradually recovered from the impact of the pandemic.
As at June 30, 2021, total equity of the Group was $1,707.8 million, an increase of $9 million q-o-q, attributed mainly to the profits generated and higher reserves set aside for the quarter.
The Group maintains a net cash position of $222 million overall.
In 1QFY2022 ended June, SATS handled some 930,000 passengers, up from just 220,000 in the same period last year. Flight handled doubled to 13,930 from 6,550, while cargo and mail processed increased to 387,380 tonnes from 220,910 tonnes this time last year.
See also: Acquiring Thai frozen food producer a 'strategic' investment for SATS: UOB KH
In the quarter, SATS produced 12.87 million meals, up from 9.39 million meals; and the Group handled 64 ship calls, compared to none this time last year.
SATS is Asia's leading provider of food solutions and gateway services, with customers in over 55 locations and 14 countries across the Asia Pacific, UK, and the Middle East. SATS has been listed on the Singapore Exchange since May 2000.
“While mass vaccination programmes are being rolled out in all of the world’s major economies, the emergence of new variants of the Covid-19 virus continue to create uncertainty about when travel restrictions will be lifted,” writes the Group.
See also: SATS shrugs off full-year loss; focuses on e-commerce cargo, potential acquisitions
SATS recently acquired Food City in Thailand to increase scale for frozen food production for its customers from aviation to food service and retail. The company has also successfully integrated its Monty’s Bakehouse acquisition in the UK to build a global innovation capability that is driving the success of new product innovation.
A cloud-based cargo handling system with AI-enabled disruption handling is helping SATS to support e-commerce growth, says the Group, as well as the transportation of vaccines and oxygen concentrators into many countries across Asia.
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Shares in SATS closed 9 cents higher, or 2.38% up, at $3.87 on July 22.
