Ground-handler SATS’s net profit up 20% in Q2

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Singapore Airport Terminal Services (SATS) has posted a 20% increase in its fiscal second quarter net profit for 2012/13.

It reported a net profit of Singapore dollars (S$) 50.3 million ($41.2 million) for the second quarter ended 30 September, up from a profit of S$40.1 million in the corresponding quarter a year ago.

Group revenue increased by 8.8% to S$462 million in the quarter. This was mainly because of higher revenue contributions from its gateway services and food solutions business units, says SATS.

Its expenditure increased by 8% to S$409 million, in tandem with the increase in revenue.

For the six months ended 30 September, SATS posted a net profit of S$91.6 million, an increase of 5% compared with the same period last year. The company's revenue increased by 11.1% to S$899 million, while its expenditure increased in tandem by 10.2%.

The company's cash and cash equivalents as of 30 September amounted to S$324 million.

On its full year outlook, SATS says Changi airport's fundamentals continue to be supported by regional traffic growth and network enhancement by some airlines. However, the decline in air cargo throughput is likely to continue in the coming months.

The ground-handler expects growth in its food business to continue, underpinned by the seasonal uplift in the third quarter and continued management of raw material costs.