SATS Ltd. (SGX: S58), a leading global air cargo and food services provider, announced yesterday, 20 August 2024, a strong financial performance for the first quarter of fiscal year 2025 (1Q FY2025). The company reported a net profit of S$65 million, a significant improvement from the loss of S$29.9 million recorded in the same period last year.
Revenue and Profit Growth
The company’s revenue surged by 15.5% year-on-year to S$1.37 billion, driven primarily by robust growth in air cargo volumes and the ongoing recovery of the travel industry.
SATS’ operating profit for the quarter soared to S$112.9 million, a substantial increase from S$7.9 million in the previous year. This improvement was attributed to operational efficiencies and scale leverage.
Positive Outlook for the Year
The company remains optimistic about its prospects for the remainder of the year. The ongoing acceleration of e-commerce, disruptions in maritime shipping, and the shift towards air cargo due to seaport congestion are expected to continue supporting demand for air cargo services.
According to the International Air Transport Association (IATA), global air cargo traffic is projected to grow by 5% in 2024, while global passenger traffic is expected to increase by 11.6%. Asia Pacific is leading the recovery, with the region anticipated to contribute half of the world’s passenger traffic growth this year.
The company expressed its commitment to improving its financial performance, reducing debt, and strengthening its overall cash position.
The company’s share price surged over 10% as of mid day today.
Read about our previous commentary on SATS results here, and our previous coverage of the company here.
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Disclosure: Joanna Sng owns shares of SATS.
