SATS Ltd has announced a net profit of $81.1m for the second quarter of FY27, reflecting a 2.8% year-on-year increase. The company reported a 9% rise in revenue to $1.71b, attributed to increased cargo and meal volumes, particularly in the Americas and Asia-Pacific regions.
The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) fell by 2.1% to $300.9m, with margins decreasing to 17.6%.
Despite this, SATS noted a sequential improvement in margins due to enhanced efficiency. The interim dividend declared stands at 2 pence per share.
Kerry Mok, President and CEO of SATS, highlighted the resilience of the company’s business model amidst ongoing geopolitical disruptions.
“Our second-quarter results show the strength of our diversified global network,” Mok stated. He emphasised the company’s focus on embedding technology across operations to boost long-term productivity.
Operating profit for the quarter declined by 7.6% to $145.4m, impacted by the Middle East conflict, which led to higher input costs and operational disruptions.
However, the company remains optimistic about sustaining progress, with plans to invest in technology and maintain disciplined cost management.
Looking ahead, SATS anticipates continued demand across its global network, with cargo volumes outperforming industry growth for the 12th consecutive quarter. The company is also expanding its capabilities, including a new cargo terminal in France and artificial intelligence (AI)-driven initiatives at major airports.
Mok expressed confidence in navigating near-term challenges whilst focusing on profitable growth and sustainable value for shareholders.
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