- SATS's 2QFY25 earnings above expectations due to margin beat. 2QFY25 core net profit grew 20.6% q-o-q and 315% y-o-y to S$69.7mil, with 1HFY25 core net profit of S$127.5mil accounting for 53%/51% of DBS/consensus’ full-year estimate.
- - Read this at SGinvestors.io -
- While the quarter included a double-counting of the rate increase in its contract with SIA (SGX:C6L) (the rate increase from the contract renewal was not captured in 1QFY25, so the group reflected it in the current quarter instead, as retrospective adjustments were not possible), SATS’s performance was still impressive considering they incurred S$21.6mil in unrealised FX translation losses in the second quarter, which should have more than negated the one-off gain.
Healthy volume growth with pricing gains in food division.
- - Read this at SGinvestors.io -
- SATS's 2QFY25 earnings above expectations due to margin beat. 2QFY25 core net profit grew 20.6% q-o-q and 315% y-o-y to S$69.7mil, with 1HFY25 core net profit of S$127.5mil accounting for 53%/51% of DBS/consensus’ full-year estimate.
- The group’s strong performance during the period was driven by a sharp increase in its operating profits (+12.7% q-o-q, +98.4% y-o-y), underpinned by strengthening operating margins (EBIT margin – 2QFY25: 8.8%, 2QFY24: 5.0%, 1QFY25: 8.2%) and healthy top-line growth.
- While the quarter included a double-counting of the rate increase in its contract with SIA (SGX:C6L) (the rate increase from the contract renewal was not captured in 1QFY25, so the group reflected it in the current quarter instead, as retrospective adjustments were not possible), SATS’s performance was still impressive considering they incurred S$21.6mil in unrealised FX translation losses in the second quarter, which should have more than negated the one-off gain.
- Group revenue grew by 5.9% q-o-q and 14.1% y-o-y to S$1,451mil in 2QFY25:
- Aviation food: +32.1% y-o-y to S$238.3mil
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Jason SUM CFA DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-11-11
Previous report by DBS:
2024-06-04 SATS - Outperformance Across All Metrics.Price targets by 3 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
- Aviation food: +32.1% y-o-y to S$238.3mil
