SATS - UOB Kay Hian 2025-02-24: 3QFY25 Results A Slight Miss; Expect Some Uncertainties For Cargo In FY26

• SATS’ 3QFY25 financial performance was a slight miss against our expectations. The miss was due to weaker-than-expected profit from the food solutions segment.
• We expect 4QFY25 to be seasonally weaker.
• - Read this at SGinvestors.io -

3QFY25 a slight miss.

• SATS’ 3QFY25 core/normalised net profit of S$65.3m/S$73.3m was a slight miss against our expectations, with 9MFY25 core/normalised net profit forming 77.9% of our full-year forecasts (we expect a seasonally slower 4QFY25).
• 3QFY25 headline net profit of S$70.4m (+1.0% q-o-q) included a S$5.1m forex translation gain (which our core net profit estimate has excluded) and three quarters of impact of employee bonus provision expenses at about S$12m (which our normalised net profit estimate has evened out into the first three quarters of FY25).
• - Read this at SGinvestors.io -
• The slight miss appears to come from the food solutions segment, which saw q-o-q lower operating profit (even after adjustment for staff bonus provision expenses), as:
  1. some non-aviation food catering projects in 2QFY25 did not sustain into 3QFY25, and
  2. SATS recently closed its Kunshan central kitchen in China and consolidated its operation with Tianjin central kitchen.

Healthy net gearing.

• Read more at SGinvestors.io.

Roy Chen CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2025-02-24 SGinvestors.io

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