SATS records $2.8m net loss in Q3
This is despite a net profit of $59.3m the previous year.
Food solutions and gateway services provider SATS has posted a net loss of $2.8m for Q3 ended 31 December 2020 despite a net profit of $59.3m a year ago, the company announced in a business update.
Despite tough operating conditions, the group has narrowed its net loss by $30.4m to $2.8m QoQ due to an uptick in air cargo volumes and improved contribution from overseas entities.
Excluding impairments on investments, SATS posted a core profit attributable to the owners of the company (PATMI) of $8.2m for Q3. Without relief from governments, core PATMI would have been a loss of $52.8m.
Meanwhile, the group’s revenue fell 54% YoY to $251m as its performance was hit by the impact of the COVID-19 pandemic on air travel, which eroded YoY flight and meal volumes by over 80% and 90%, respectively.
Revenue from food solutions fell 53.8% to $143.5m, whilst gateway services revenue dropped 55.1% to $105.1m.
SATS mentioned that whilst the operating environment remains challenging amidst travel restrictions, the demand for air freight to transport e-commerce, pharmaceutical, and perishable products continues to increase.
“We are committed to helping our airline customers to rebound from this crisis. In addition, SATS aims to grow its revenues from food service and retail chains, institutions, fast-casual restaurants, and other non-travel related customer segments such as security services,” SATS president Alex Hungate said.
The group added that the pandemic has also changed consumer lifestyles and created opportunities for SATS to grow businesses outside of the travel segment.