SATS (SGX: S58) is a food and logistics company that is best known for managing most of the ground-handling services and in-flight catering at Singapore’s Changi Airport. Due to the recurring nature of the business, SATS’ financial performance has been remarkably stable. In fact, SATS’ operating profit actually grew during the last financial crisis, from S$153 million in 2007 to S$170 million in 2009.
Despite this, SATS seems to be facing some challenges on the growth front in recent years — revenues have grown just 8% over the past three years. While earnings have grown over the same period due to increased efficiency, revenues will ultimately need to grow if the company is to earn more over time. Hence, I attended SATS’ 2019 AGM to find out more about the company’s growth plans.
Here are eight things I learned from the 2019 SATS AGM:
Disclaimer: This is not a sponsored