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30 Must-See Numbers to Understand More About SATS Ltd

Source: SATS

SATS Ltd (SGX: S58) is the chief ground-handling and in-flight catering service provider at Singapore Changi Airport. Besides its operations in Singapore, SATS has also established a network in Asia through various joint ventures.

The company released its annual report for the full year ended 31 March 2017 (FY2016-17) recently. Here are some statistics that investors might want to know about from the report.

Financial Figures

Revenue for FY2016-17 was up 1.8% year-on-year to S$1.7 billion. Both its Food Solutions and Gateway Services business segment posted higher sales. Meanwhile, the firm achieved a 16.9% increase in net profit to reach a new record of S$257.9 million. This translated to a net margin of 15.1%, up from 12.9% last year.

Return on equity came in at 16.7%, an improvement from 15% in the previous year. The debt-to-equity ratio was low at 0.07 times.

The firm generated cash flow from operations of S$308.9 million. With capital expenditure coming in at S$88.1 million, free cash flow of S$220.8 million was raked in.

Dividends

The firm dished out a final dividend of 11 cents per share. Including the interim dividend of 6 cents per share, the total dividend for FY2016-17 was 17 cents per share, an increase of 13.3% year-on-year.

SATS paid out 73.5% of its earnings as dividends for the year. The dividend cover was 1.4 times.

Operating Statistics

The company has operations in 47 airports, located in 54 cities spread out across 14 countries.

For the year, it handled 51,530,000 passengers, 171,380 flights and 147 ship calls. Gross meals produced were 67,610,000 and the number of cargo/mail processed were 1,720,000 tonnes.

At Changi Airport, SATS served 48 airlines, including newly secured customers such as Air Niugini, Delta Airlines and Fiji Airways.

Marina Bay Cruise Centre Singapore set a new record. Since starting its operations in 2012, it handled its 2,000,000th passenger and 500th ship call during the financial year.

Innovation and Technology

The following is a quote from the annual report:

“At SATS, innovation is one of our core values and part of our DNA. In today’s digital economy, we remain focused on technology-driven innovation in order to differentiate ourselves and better serve a dynamic market.”

In line with its drive for innovation and technology, it reduced mail processing time by 50% through its newly-opened SATS eCommerce AirHub, a highly automated mailbag sortation facility.

It also has an automated production line at SATS Inflight Catering Centre 2 to improve productivity and enhance consistency of taste and quality. Productivity, measured using value-added per employment cost, improved from 1.48 times last year to 1.54 times in FY2016-17, a rise of 4.1% year-on-year.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of SATS Ltd. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.