An Overview Of SATS Ltd’s Operational Performance In The Last 5 Years

Source: SATS

SATS Ltd (SGX: S58) is a company with two business segments, namely, Food Solutions and Gateway Services. The former covers services such as airline catering, food distribution, and industrial catering. The latter is involved in ground handling services of passengers, flights, ferries, and cargo.

In a previous article, I looked at the historical financial performance of the company over its last five fiscal years. But, financial information is only one of the many types of information we need to help us evaluate a company.

In here, I will examine SATS’s operational performance over its last five fiscal years. Doing so can give us a more holistic view of SATS’s business.

Here’s a table showing the operating statistics of the company from FY2012-13 (financial year ended 31 March 2013) to FY2016-17:

Source: Sats FY2016-17 annual report

There are a few observations we can draw. Firstly, the volume of cargo/mail processed has grown steadily – up 18% in all – over the timeframe we’re observing.

Secondly, passengers handled, gross meals produced, flights handled, and ship calls may not have grown in each year, but they have all increased over the past five years. Their cumulative growth from FY2012-13 to FY2016-17 are 19%, 5%, 11%, and 81%, respectively.

In sum, we can see that SATS has increased its throughput materially in its last five fiscal years. The company’s ability to continue doing so will be an important determinant of how well its stock price does in the years ahead.

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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. Motley Fool has a recommendation for SATS Ltd.