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SATS FY15-16 net profit grows 12.7% to $220.6m

SATS FY15-16 net profit grows 12.7% to $220.6m


For the financial year ended 31 March 2016, SATS Group revenue decreased 3.1 per cent to $1,698.2m. Revenue from Food Solutions fell 8 per cent to $967.4m due to the transfer of the food distribution business, weakening of the Japanese Yen and the loss of revenue from the divestment of its Australian subsidiary, Urangan Fisheries. Excluding the transfer of the food distribution revenue to SBRF and the Urangan divestment, the Group’s revenue would have improved $53.2m or 3 per cent while the Food Solutions’ revenue increase would have been $24.1 million or 2.3 per cent. Gateway Services’ revenue grew 4.1 per cent to $725.9m. Group expenditure shrank $91.7m to $1,483.5m. Similar to the fourth quarter, all expense categories recorded reductions except staff costs and depreciation and amortisation charges.

Despite a decline in revenue, efforts made to contain expenditure have yielded positive returns, as Group operating profit significantly increased 20.6 per cent to $214.7m over last year. Share of after-tax profits from associates/joint ventures for the full year was $48m, reflecting a slight decline of $0.1m or 0.2 per cent year-on-year, with better performances from the Food Solutions’ associates/joint ventures. There was an impairment of property, plant and equipment of $2.1m as explained.

Profit attributable to owners of the Company grew 12.7 per cent year-on-year to $220.6m. Underlying net profit was $218.1m or 11.3 per cent higher than last year. Earnings per share rose 13.7 per cent to 19.9 cents.