The increase was due to revenue improvements in both its food solutions and gateway services.
SATS’ profits for Q3 rose 3.5% YoY to $68.9m from $66.6m, an announcement revealed. Its revenue also inched up 5.5% YoY to $464m from $439.8m.
The strong performance was attributed to increased volume growth in its food solutions and gateway services, the firm explained. Food solutions’ revenue grew 5% YoY to $252.4m from $240.4m with growth registered in all its core catering subsidiaries in Singapore, Japan and China, whilst revenue from gateway services advanced 6.2% YoY to $211.3m from $199m.
Also read: SATS Q2 profits down 9% to $65.7m
Excluding a one-off gain of $5.8m in DFASS SATS (DPSL), SATS’ underlying net profit rose 1.6% YoY to $63.1m from $62.1m, according to its financial statement.
As of December 2018, SATS had total assets amounting to $2.3b, the firm added.
Despite the slowdown in the global economy, increasing volumes in the aviation industry and strong demand for convenient food in Asian cities are expected to create growth opportunities for SATS. It cited how China continues to be a key market for its scale and connectivity, with plans to build new central kitchens in the country to supply fast casual restaurant chains in key cities.
It further noted that its ground and cargo handling ventures in India and Malaysia are already growing profitably.
“We continue to enhance the sustainability of our business by digitalising our operations, developing our people, and building new capabilities whilst seeking acquisitions that can help us accelerate the implementation of our strategy to feed and connect Asia,” the firm highlighted.
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