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SATS net profit down 10.6% to $57.3m
This is due to the absence of last year's gain from the disposal of assets.
If it were not for the one-off items, SATS would have had a decent quarter.
For its first quarter ending in June, SATS registered a net profit of $57.3m, 10.6% lower than the last corresponding quarter. According to the group, this is mainly due to the absence of last year’s gain from the disposal of the Senoko plant. Without these one-off items, the underlying net profit improved by $1.8m or 3.2%.
For the said quarter, its revenue grew by $2.3m or 0.5% up to $426.5m.
The revenue from food solutions decreased by 2.9% to $233.1m, whilst Gateway Services’ revenue increased $193.1m.
This came as expenditure rose to $373m. Staff costs, as well as company premise and utilities expenses, were comparable year-on-year, as a result of various automation, productivity and cost management initiatives in place.
On the other hand, cost of raw materials shrank by $4.5m, following the lower food solutions' revenue. Conversely, licence fees increased significantly by $4.3m mainly due to the cessation of rebates while depreciation and amortisation charges increased $1m in line with additional capital expenditure incurred. Other costs increased $2m due to higher costs incurred on equipment maintenance, fuel consumption and marketing activities.
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