SATS’ 1Q16 Net Profit Jumps 14.5% Despite Lower Revenue

SATS announced that 1Q16 revenue slipped 4.2 percent to $416.9 million, while net profit grew 14.5 percent to $49.6 million.

Revenue from the food solutions division fell 8.2 percent due to poorer performance from its Japanese subsidiary, TFK Corporation, weaker Japanese yen and the divestment of an Australian subsidiary, Urangan Fisheries, in July 2014.

The fall in revenue was also attributed to the transfer of the group’s food distribution business to the new joint venture company, SATS BRF Food in June 2015, resulting in a loss of revenue.

The group’s overall performance was boosted by its efforts to improve productivity which reduced expenditure by $22.6 million, contributing to a $4.3 million increase in operating profit.

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