In 3Q FY25 SATS Group’s revenue increased by 12.5% to S$1.52 billion compared to the same period last year due to continued business volume growth and rate increases. Revenue for Gateway Services increased by 10.1% YoY to S$1.17 billion, reflecting both favourable market conditions and continued market share gains. Our cargo volumes exceeded IATA’s global growth benchmarks, supported by broad-based demand and the shift of some ocean freight to air cargo due to Red Sea disruptions. Food Solutions’ revenue increased by 21.1% YoY to S$356.7 million driven by the increased demand for inflight meals as travel recovers.
The Group’s expenditure (excluding depreciation and amortisation) increased by 10.3% to S$1.26 billion YoY, in line with the increase in business volume. Included in 3Q FY25 expenditure was an unrealised foreign exchange gain of S$5.1 million, mainly due to the translation of USD and Euro intercompany loan balances at the end of the third quarter.
In 3Q FY25, SATS operating profit increased by S$43.9 million to S$127.3 million YoY. Operating profit margin also improved from 6.2% to 8.4% driven by an increase in operational leverage as revenue growth outpaced the increase in expenditure.
The share of earnings of associates and joint ventures decreased by 20.2% to S$27.6 million YoY partially due to adjustment relating to purchase price allocation in the prior period contributing positively to the results last year.
In 3Q FY25, SATS posted PATMI of S$70.4 million reflecting an improvement of S$38.9 million YoY. This better performance was attributed to scale and operating leverage derived from higher business volume and rate increases from customers.
Compared to 2Q FY25, there was a catch up on additional bonus provision in this quarter. The bonus provision contributed to cost increases but underscores the company’s commitment to rewarding performance-driven outcomes.
9M FY25 Group revenue increased by 14.0% to S$4.34 billion YoY due to business volume growth as well as rate increases from customers. Revenue for Gateway Services increased by 10.8% YoY to S$3.32 billion. This growth reflects robust air cargo volumes across multiple sectors, including high-tech shipments, e-commerce and other cargo streams, complemented by volume shifts from ocean freight due to ongoing geopolitical uncertainties. Food Solutions’ revenue improved by 25.9% to S$1.02 billion as aviation travel continues to recover and the demand for inflight meals increased.
The Group’s expenditure (excluding depreciation and amortisation) increased by 9.7% to S$3.57 billion YoY, in line with the increase in business volume. Included in 9M FY25 expenditure was a charge of S$17.9 million for unrealised foreign exchange losses, mainly due to translation of USD and Euro intercompany loan balances at the end of the period.
SATS’s 9M FY25 operating profit increased YoY to S$367.4 million from S$155.4 million. Operating profit margin also expanded from 4.1% to 8.5% driven by favourable operating leverage as revenue growth outpaced that of expenditure.
The share of earnings of associates and joint ventures increased by 17.6% to S$92.9 million, driven by travel recovery and higher cargo volumes.
In 9M FY25, SATS posted PATMI of S$205.1 million reflecting a significant improvement of S$181.4 million YoY. This improved performance was credited to the scale and operating leverage derived from handling of a higher volume of business, and rate increases from customers.
Total equity increased by S$155.0 million, reaching S$2.71 billion as of 31 December 2024, compared to 31 March 2024. This increase was primarily attributed to the profit generated in 9M FY25. Non-current assets decreased by S$69.1 million to S$6.46 billion as of 31 December 2024. This reduction was mainly due to lower right-of-use assets and intangible assets resulting from foreign exchange translation. The reduction was partially offset by the addition to fixed asset during the year.
Current assets increased by S$152.7 million to S$2.1 billion, driven by higher trade and other receivables and cash balance. Total liabilities decreased by S$71.4 million to S$5.85 billion, primarily due to lower trade payables balance.
For 9M FY25, operating cash flow increased to S$516.9 million, compared to S$247.8 million recorded in the corresponding period last year. SATS’ free cash flow for 9M FY25 was positive S$48.8 million, reflecting an improvement of S$215.5 million YoY, driven mainly by higher YoY operating profit for the year. 3Q FY25 free cash flow4 was positive S$118.1 million, which was a S$73.4 million improvement YoY.
While geopolitical uncertainties weigh on the general business environment, with tariff increases possibly having a negative impact on trade flows, we are confident we have the resilience to navigate the challenges.
Kerry Mok, President and Chief Executive Officer of SATS, said, “Scale and operating efficiencies, boosted by strong seasonal demand, delivered profitability for the SATS Group. The recovery of passenger volumes at Changi Airport in 2024 to 99.1% of pre-pandemic levels also contributed to our improved performance. We remain focused on pursuing our strategy to grow our network, enhance operational excellence and work with our customers and partners to develop innovative and specialised services. With our global network, we are in a good position to support our customers in their response to short-term adjustments in this period of volatility while keeping long-term opportunities in mind.”
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