Sats logs 12.8% jump in Q3 earnings despite lower revenue

Sats group expenditure shrank 5.1 per cent to S$379.2 million.
Sats group expenditure shrank 5.1 per cent to S$379.2 million.PHOTO: SATS

SINGAPORE - Ground handling firm Sats on Friday posted a 12.8 per cent jump in third-quarter earnings, in spite of a dip in its bottomline.

Net profit for the three months to Dec 31 came in at S$60.6 million, well up on the S$53.7 million from the same period a year ago.

Revenue, however, slid 2.2 per cent to S$441 million. This was as contributions from its food solutions segment dropped 7.1 per cent to S$251 million, following the transfer of the food distribution business to the joint venture company Sats BRF Food in June 2015 as well as the weakening of the Japanese yen, said the group in a statement.

Notably, group expenditure shrank 5.1 per cent to S$379.2 million, thanks to reductions in most expense categories except for staff costs, depreciation and amortisation charges.

"Economic uncertainty and low consumer confidence across most of Asia suggest that the challenging operating environment will continue," said Sats.

"However, our focus on raising productivity by adopting new technologies and driving economies of scale has prepared us well for these headwinds."

Sats shares closed eight cents or 2 per cent lower at S$3.84 on Friday, before the results were released.