- 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:
- some non-aviation food catering projects in 2QFY25 did not sustain into 3QFY25, and
- 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.
