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These 2 Companies Delivered Mixed Results In Their Latest Quarterly Earnings

We’ve come to the end of the earnings season. As is common with every earnings season, there will be some companies posting growth, some companies posting mixed numbers, and some companies experiencing declines.

So, which are the companies that have recently reported mixed results? Let’s look at two of them:

1. In mid-November, Singapore Post Limited (SGX: S08) released its second quarter results for its fiscal year ending 31 March 2018 (FY2018).  As a quick introduction, Singapore Post is a mail and logistics services provider. It organises its business into three operational segments: Postal, Logistics, and eCommerce.

During the quarter, revenue was up by 10.2% year-on-year to $354.7 million. But, net profit attributable to shareholders was down by 9.5% to S$28.5 million.

The improvement in revenue was due to growth in the company’s Postal and Logistics business segments, offset by a slight decline in revenue in the eCommerce segment. Singapore Post’s net profit fell due to higher operating expenses and the absence of a one-off gain in the reporting quarter.

Paul Coutts, Singapore Post’s chief executive officer, shared the following comment on the company’s latest business performance in the earnings release:

“Our transformation into a leader in postal and eCommerce logistics is moving ahead. The full benefits of our transformation may not be immediate, however we are investing for the long term.

As we move into the next phase of our transformation, four themes will guide our focus: Winning in our home market, igniting our future growth engines in Southeast Asia and beyond, extracting full value from our investments, and driving towards cost leadership. The key to realising these opportunities is execution.”

For the reporting quarter, Singapore Post has declared an interim dividend of 0.5 cent per share, which is down by 50% from the interim dividend seen in the same quarter a year ago.

2. SATS Ltd (SGX: S58) reported its latest earnings in early November. It was for the second quarter of its fiscal year ending 31 March 2018 (FY2018).

SATS 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 its reporting quarter, SATS’s profit attributable to shareholders grew 16.4% year-on-year to S$72.2 million despite revenue slipping by 0.8% to S$434.8 million.

SATS’s revenue fell slightly because of the deconsolidation of a subsidiary after it had sold a 51% stake in said subsidiary; SATS now accounts for the subsidiary as an associate.

Meanwhile, the company’s bottom-line was higher due to a one-off gain from the sale of the aforementioned subsidiary. Growth in other associates and joint-ventures also contributed to SATS’s higher profit. An interim dividend of 6.0 cents per share was declared for the quarter, unchanged from a year ago.

On its future, SATS had the following comments in its earnings release:

“The operating environment continues to be challenging, with global economic uncertainty and competitive pressures in the aviation business.

Our productivity initiatives have helped us to offset pricing pressures resulting from lower yields in the airline sector.

We expect our recently announced investments in Malaysia and Turkey to make important contributions to growth in the future.”

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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 recommendation for SATS.