10 Quick Things That Investors Should Know About Sats Ltd’s Latest Result
Sats Ltd (SGX: S58) is a company providing food solutions and gateway services solutions.
The Food Solutions covers airline catering, food distribution, and industrial catering whereas Gateway Solutions is involved in ground handling services of passengers, flights and cargo.
The company recently announced its second quarter result for the financial year ending March 2018 (2Q 17/18). Here, I will share 10 things from the announcement that I feel are important to note.
1. Quarterly sales revenue declined 0.8% year-on-year. Similarly, first half revenue in FY17/18 declined 2% year-on-year.
2. Quarterly operating profit declined 3.9% year-on-year.
3. Share of associates and joint ventures profits increased 5% year-on-year due to improvements in both Food Solutions’ and Gateway Services’ associates and joint ventures.
4. Quarterly net profit attributable to shareholders improved 16.3% year-on-year. Excluding a one-off item, underlying net profit grew 5% year-on-year.
5. Cash flow wise, Sats generated $90.6million in operating cash flow, down 14.5% year-on-year. As of September 2017, Sats had $471.4 million in cash and cash equivalent, and $104 million in borrowings.
6. Segment wise, Food Solutions revenue declined 3.1% year-on-year to $244.8 million. Gateway Services, on the other hand, saw revenue grow by 2.3% year-on-year to $189.7 million.
7. Passengers handled for first half of 17/18 grew 3.1% year-on-year to 25.96 million.
8. Flights handled for first half of 17/18 increased 1.7% year-on-year to 85,280.
9. Cargo/mail processed for first half of 17/18 grew 7.6% year-on-year to 904,880.
10. Gross meal produced for first half of 17/18 increased 2.0% year-on-year to 34.90 million.