Singapore - SATS Ltd is an SGX listed company which is specialized in providing food solutions and gateway services solutions. SATS caters to the needs of the aviation sector and a host of other businesses in hospitality, food, healthcare, freight, and logistics industries besides the governments. With an experience over 70 years and a growing regional presence, SATS is poised for a new phase of growth, creating value for our customers, partners, and shareholders, in Singapore and beyond also a good share investment.
Recently the company disclosed it's latest quarterly results for the year ending 31 March 2019. There are some positive and some negative of its quarterly results that investors should know, let's talk about the positive and negatives of the SATS Ltd.
The quarterly results of the SATS Ltd
Below image shows the consolidated income statement from SATS for the principal quarter of FY18/19-
In general, we see that the two sales and profit after tax and minority interest (PATMI) were superior to those of a similar period a year ago.
The positives of the SATS Ltd -
Let's take a look at the revenue of the company the Food Solutions revenue increased 2.7% multi-year to S$239.5 million and the Gateway Services revenue increased by 3.4% multi-year to S$199.6 million.
The operating expenditure of this stock investment increased at a slower rate as compared to the revenue of the company which caused the expansion of the operating margin to 14.8% from 12.5% in this quarter.
The free cash flow for the quarter was S$72.3 million, up from S$27.7 million in the same period last year, mainly due to the higher operating cash flow.
The balance sheet of the SATS Ltd's remained strong with cash and short-term deposits of S$439.7 million and debt of S$106.1 million, as at 30 June 2018.
The negatives of the SATS Ltd -
There is just a single negative point that investors should know from the most recent quarterly results, which is the weaker execution in SATS' partners and joint ventures. Partners and joint ventures benefit after assessment commitment declined hardly by 1.3% to S$15.3 million. The fall was chiefly because of weaker execution from Gateway Services, where benefit after assessment descended by 8.3% to S$11.1 million.
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| SATS Ltd’s Latest Quarterly Results - Positives & Negatives |
Recently the company disclosed it's latest quarterly results for the year ending 31 March 2019. There are some positive and some negative of its quarterly results that investors should know, let's talk about the positive and negatives of the SATS Ltd.
The quarterly results of the SATS Ltd
Below image shows the consolidated income statement from SATS for the principal quarter of FY18/19-
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| Source - SATS’ Results Presentation |
The positives of the SATS Ltd -
Let's take a look at the revenue of the company the Food Solutions revenue increased 2.7% multi-year to S$239.5 million and the Gateway Services revenue increased by 3.4% multi-year to S$199.6 million.
The operating expenditure of this stock investment increased at a slower rate as compared to the revenue of the company which caused the expansion of the operating margin to 14.8% from 12.5% in this quarter.
The free cash flow for the quarter was S$72.3 million, up from S$27.7 million in the same period last year, mainly due to the higher operating cash flow.
The balance sheet of the SATS Ltd's remained strong with cash and short-term deposits of S$439.7 million and debt of S$106.1 million, as at 30 June 2018.
The negatives of the SATS Ltd -
There is just a single negative point that investors should know from the most recent quarterly results, which is the weaker execution in SATS' partners and joint ventures. Partners and joint ventures benefit after assessment commitment declined hardly by 1.3% to S$15.3 million. The fall was chiefly because of weaker execution from Gateway Services, where benefit after assessment descended by 8.3% to S$11.1 million.
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Stay updated with our Singapore stock market blog for the receiving the latest updates, penny stock recommendation and stock signals. Thank you for reading.
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