Home News Aviation & Engineering

SATS's non-aviation business the lone bright spot in 1Q

Jeffrey Tan
Jeffrey Tan8/28/2020 07:00 AM GMT+08  • 6 min read
SATS's non-aviation business the lone bright spot in 1Q
In a business update on Aug 24, SATS reported that its non-aviation revenue surged 73.3% y-o-y to $96.9 million in 1QFY2021 ended June 30.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

As travel restrictions to curb the spread of Covid-19 came into full force in 2Q this year, demand for air travel had plunged to a dramatic low, hurting not just airlines but also SATS, which provides food solutions and gateway services to the aviation sector. Fortunately, the company’s non-aviation business was a bright spot.

In a business update on Aug 24, SATS reported that its non-aviation revenue surged 73.3% y-o-y to $96.9 million in 1QFY2021 ended June 30. This was largely attributed to Country Foods, which became an indirectly wholly owned subsidiary of the company last year. SATS had acquired the remaining 49% stake it did not own in Country Foods from food company BRF for $17 million. Country Foods was previously known as SATS BRF.

According to SATS president and CEO Alex Hungate, Country Foods had seen higher trading and distribution volumes to retail channels and the food services industry here and overseas. This was partly attributed to the expansion of Farmpride’s range of products to include ready-to-eat frozen food. New products, such as Spanish bakery brand Europastry, helped too. “Maybe people were eating more doughnuts during the circuit breaker period,” Hungate quips.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.