Its revenue for both food solutions and gateway services grew.
SATS’ profits for the first quarter of 2018 jumped 11.5% to $63.9m from $57.3m last year, whilst revenue went up by 3% to $439.4m from $426.75m last year.
According to its financial statement, it recorded higher revenue for Food Solutions (+2.7%) at $239.5m and for Gateway Services (+3.4%) at $199.6m. Revenue was still hit by the deconsolidation of SATS HK Limited (SHK).
Group expenses rose by 0.4% to $374.5m, led by the higher cost of raw materials, licence fees, as well as depreciation and amortisation charges.
Share of results from associates/joint ventures dipped by 1.3% to $15.3m with lower contributions from Gateway Services’ associates/joint ventures, partially compensated by Food Solutions’ improved performance.
SATS commented, “Despite the threat of global trade uncertainties potentially affecting cargo volumes, we expect passenger volumes in Asia to grow. At the same time, rapid urbanisation in the region will drive demand for safe, high-quality food, and more cruise ships will be deployed in Southeast Asia to keep pace with burgeoning consumer interest.”
However, it warned that pricing pressures will remain.
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