SATS exceeds synergy targets with $162m to date

The figure includes $103m annualised EBITDA synergies and $58m in fiscal and financial savings.

Securities Investors Association Singapore, SATS Ltd. has so far recorded total synergies of $162m, exceeding its initial target of $100m in annualised EBITDA synergies over a five-year period. 

In response to queries made by the Securities Investors Association Singapore, SATS Ltd. reported that the integration of its subsidiary Worldwide Flight Services (WFS) has made significant progress over the past 2 years. 

It has achieved annualised EBITDA synergies of $103m in FY25. On top of the annualised EBITDA synergy benefits, SATS also realised $58m in fiscal and financial savings

Meanwhile, SATS clarified that due to the tariff situation still in a fluid state, the potential impact on the group cannot yet be fully assessed.  

They reported that though there was a decline in the e-commerce air cargo volumes from China into the US due to the removal of the de minimis exemption, the China-US e-commerce accounts for less than 5% of the group’s revenue.

“We have observed that while we experienced some decline in e-commerce volumes into the US, there have been increased volumes into Europe, Middle East, and APAC,” SATS said in their response.

SATS also said that the group will continue to have two core businesses – Gateway Services and Food Solutions.  

“The Food Solutions business has demonstrated good recovery of volumes and margins from the COVID period. During that period, we had already taken steps to invest in our regional production network in China, India and Thailand, and we remain focused on strengthening our aviation Food Solutions business across our network," SATS said in a bourse filing.  

"We also continue to seek synergistic growth in non-aviation food in locations where we have aviation Food Solutions facilities, to manage the seasonality of the aviation food business.”