Net profit dipped at ground-handling firm Sats in the fourth quarter, it reported yesterday.
Earnings fell 1.8 per cent to $65.4 million for the three months to March 31.
Underlying net profit, which strips out one-off items, was almost flat at $51.5 million, compared with $51.6 million a year earlier.
Revenue slipped 0.5 per cent to $423.5 million, as turnover in the food solutions business declined 2.4 per cent to $228.3 million.
This was partly offset by a 1.7 per cent growth in gateway services revenue to $194.7 million, despite the sale of a 51 per cent stake in Sats HK.
Operating profit was 0.7 per cent higher year-on-year at $46.1 million, largely due to lower staff costs from the deconsolidation of Sats HK.
AT A GLANCE
REVENUE: $423.5 million (-0.5%)
NET PROFIT: $65.4 million (-1.8%)
FINAL DIVIDEND PER SHARE: 12 cents (+9.1%)
There was also a gain of $8.5 million at the group's Japan subsidiary, TFK Corporation, in the fourth quarter from its disposal of its Brazil unit, Tokyo Flight Kitchen Restaurantes and its investment property.
The $24 million share of results of associates and joint ventures was 16.7 per cent lower.
Earnings per share clocked in at 5.9 cents, down from six cents a year earlier.
Sats has proposed a final dividend of 12 cents a share, up one cent from last year, to be paid out on Aug 17.
Net profit for the full year rose 1.4 per cent to $261.5 million, boosted by contributions from associates and joint ventures, as well as other non-operating income.
Revenue edged down 0.3 per cent to $1.72 billion.
Sats said: "Looking ahead, the robust growth in passenger and cargo traffic and increased demand for high-quality food across Asia will present exciting opportunities."
As the firm expands its footprint, it is also digitising its operations to provide new services for greater seamlessness across its locations.
OCBC Investment Research analyst Eugene Chua noted that Sats' core profit after taxes and minority interests for the year missed expectations.
Ahead of a briefing with management, he maintained a "hold" call and put his $5.50 target price under review.
Sats shares closed down seven cents at $5.28 yesterday.