3 Key Slides Investors Should See About SATS Ltd’s Latest Results

SATS Ltd (SGX: S58) is a company that provides food solutions and gateway services solutions. Under the former, there’s  airline catering, food distribution, and industrial catering. As for the latter, SATS mainly provides ground handling services of passengers, flights, and cargo.

In late July, SATS released its first quarter results for its fiscal year ending 31 March 2018 (FY17/18). The company had prepared a presentation for its earnings announcements. In the deck of slides, there are three that contain key information about the company’s business performance that I think investors should see.

Here are the crucial information from the three slides.

The overall result

One of the slides contained SATS’s income statement for the first quarters of FY17/18 and FY16/17. Here is the statement:

Source: SATS FY17/18 first quarter earnings presentation

We can see that SATS’s revenue in the reporting quarter was marginally higher compared to a year ago. But, profit after tax and minority interests (PATMI) was down 10.6% year-on-year.

The decline in PATMI was due to an absence of a gain on the sale of certain assets that took place in the first quarter of FY16/17. If the one-off gain was excluded, SATS’s underlying net profit actually grew by 3.2% in the reporting quarter.

The segmental results

SATS’s revenue sources can be split according to a few categories, such as by business segment, by industry, and by geography. One of the slides in SATS’s earnings presentation contained this information in a table that you can see below:

Source: SATS FY17/18 first quarter earnings presentation

As you can see, it’s kind of a mixed picture for SATS. Within each classification type, the company had areas where it experienced revenue growth, as well as revenue declines.

Performance of associates and joint-ventures (JVs)

A significant part of SATS’s bottom-line comes from the company’s share of results from its associates and JVs. Here’s the information given in one of SATS’s slides in its presentation deck:

Source: SATS FY17/18 first quarter earnings presentation

It’s good to note that this part of the business is growing quickly, as its profit after tax increased by 27% in the reporting quarter.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore has a buy recommendation for SATS.