26-05-2025
SATS' earnings increase more than three-fold for FY2025 from expanded network and business volume growth
SATS' free cash flow turned positive $228.3 million as at the end of March, and the group generated a positive free cash flow of $155.2 million for the fourth quarter alone.
SATS has reported earnings of $243.8 million for the full year FY2025 ended March 31, 2025, increasing more than three-fold in earnings compared to the same period a year ago.
For the 2HFY2025, earnings came in at $109.1 million, and for the 4QFY2025, earnings improved to $38.7 million.
For the full year FY2025, group revenue grew 13% y-o-y to $5.8 billion, driven by a growth in business volumes and contributions from an expanded network of operations.
SATS' Gateway Services revenue grew 10.6% y-o-y to $4.5 billion, reflecting strong air cargo performance across multiple sectors including high-tech shipments and e-commerce. This growth was further supported by volume shifts from ocean freight due to ongoing geopolitical uncertainties.
Food Solutions delivered revenue of $1.4 billion, a 22.0% y-o-y increase, as global aviation travel continued its recovery trajectory, driving higher demand for inflight meals.
Group expenditure for FY2025 increased 9.5% y-o-y to $4.8 billion in line with the expansion in business activities, and SATS recorded an operating profit of $475.7 million for FY2025, a 94.8% y-o-y increase.
As a result, operating profit margin expanded from 4.7% to 8.2%, reflecting favourable operating leverage. The share of earnings from associates and joint ventures grew by 3.9% to $114.3 million, bolstered by overall business volume growth across our network, a one-off recovery gain for a long outstanding debt in Indonesia, and partially offset by bonus catch-up in several operating units for good performance.
As at end March, total equity grew to $2.77 billion, up from the $209.4 million reported in the same period a year ago driven by profits generated during FY2025.
The group's total assets rose to $8.88 billion as at end March 2025, largely attributable to increased right-of-use assets as it expanded its warehouse capacity to support business growth.
As at end March, total liabilities increased to S$6.11 billion, mainly due to higher lease liabilities, partially offset by the repayment of $200 million in Singapore dollar Medium Term Notes (SGD MTN) that matured in March 2025.
SATS' free cash flow turned positive $228.3 million as at the end of March, due to higher operating profit achieved during the year with financial and liquidity management.
The group generated a positive free cash flow of $155.2 million for the fourth quarter alone, an improvement of $36.7 million y-o-y signalling the group's enhanced cash generation capabilities.
SATS' board of directors have declared a final dividend of 3.5 cents per share, combined with the interim dividend of 1.5 cents per share, this brings the total full-year dividend to 5 cents per share.
The group says that it will continue to pare down debt, reinvest in the business and enhance shareholder returns.
Shares in SATS closed flat at $2.98 on May 23.
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