Sats Q4 profit dips 1.7%, full-year earnings up 12.7%

SINGAPORE - Airpost services provider Sats' reported a 1.7 per cent dip in earnings to S$50.7 million for the fourth quarter ended March 31 from a year ago on lower food revenue.

Total revenue declines 1.8 per cent year on year to S$417.6 million, with sales from food solutions down 7.4 per cent to S$232.3 million, due primarily to the transfer of a food distribution business to a joint venture company Sats BRF Food (SBRF) in June 2015, and the weakening of the Japanese yen.

Excluding the transfer of the food distribution revenue to SBRF, revenue would have improved S$27.9 million or 6.6 per cent, Sats said in a filing to the Singapore Exchange on Monday (May 23).

For the full year, net profit rose 12.7 per cent year on year to S$220.6 million as a decline in revenue was more than offset by the reduction in expenditure, which dropped S$91.7 million. This boosted group operating profit by 20.6 per cent to S$214.7 million.

The company is declaring a final dividend of 10 Singapore cents per share, up from nine Singapore cents a year ago.

Separately, Sats announced that Mr Edmund Cheng Wai Wing will be stepping down as its chairman and director with effect from the conclusion of the its annual general meeting scheduled for July 19.

Ms Euleen Goh Yiu Kiang, an independent non-executive director of the company, will be appointed chairman with effect from the conclusion of the SATS AGM.