- SATS's share price was up 10% in the morning trading session of 21 Aug 2024, after reporting a 15.5% y-o-y increase in 1QFY25 revenue on the back of broad-based growth.
A positive beat to start the year
- - Read this at SGinvestors.io -
- Meanwhile, revenue for Food Solutions surged 29.3% y-o-y to S$310.8m due to increased demand for inflight meals. Aviation and non-aviation meal volumes increased 26.7% and 4.8% y-o-y (1.7% and 5.2% q-o-q) to 15.2m and 10.9m, respectively.
Significant margin expansion with levers to drive more synergies and operational efficiency going forward
- 1QFY25 expenses grew at a slower 8.7% y-o-y to S$1.1b; as a result, SATS’s operating profit for the quarter jumped to S$112.9m from S$7.9m in 1QFY24. This translates to an expansion of EBIT margin from 0.7% to 8.2%.
- - Read this at SGinvestors.io -
- Management sees further room to unlock synergistic benefits as the integration progresses, as well as to drive operational efficiency by scaling up its business and growing revenues. These should bode well for further margin expansion going forward, notwithstanding some seasonality.
1QFY25 PATMI of S$65m versus an operating loss of S$29.9m in 1QFY24.
- Read more at SGinvestors.io.
Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.
Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2024-08-22
Previous report by OCBC:
2024-05-31 SATS - Charting A Flight Path Towards Sustainable Growth.
Price targets by 2 other brokers at SATS Target Prices.
Listing of research reports at SATS Analyst Reports.
Relevant links:
SATS Share Price History,
SATS Announcements,
SATS Dividends & Corporate Actions,
SATS News Articles
