SIA Engineering Group recorded a net profit of $66.4 million despite the reduction in wage support with a revenue of $796.0 million for the financial year ended 31 March 2023. The revenue reported an increase of 40.6% year-on-year as maintenance and overhaul demand picked up in line with the recovery of flight activities.
The Group reported an operating loss of $26.3 million, almost $4.5 million more than 2022, but the loss was progressively lower quarter-on-quarter.
Excluding the impact of the reduction in wage support, operating performance improved $55.6 million year-on-year.
Group expenditure rose 39.9%, with the increase mainly due to the progressive step down of government wage support and higher manpower and material costs. Manpower costs increased largely due to higher headcount, and cessation of manpower cost mitigation measures. The Group handled 65% of pre-pandemic volume of total flights handled.
Excluding the impact of prior year’s tax write-back and lower wage support, Group net profit improved $102.6 million year-on-year.
In the second half of the financial year, the Group’s operating loss was $15.5 million, comparable to the operating loss of $15.1 million in the same period last year as improvement in operating performance offset the absence of wage support. Revenue grew 43.4% as increase in flight activities continued to drive demand for aircraft maintenance and overhaul. Expenditure rose 41.4% mainly due to increase in manpower and materials usage accompanied by the cessation of wage support. Excluding the impact of the reduction in wage support, operating performance improved $24.2 million.
The Group recorded a net profit of $33.9 million for the half year ended 31 March 2023, a reduction of $8.7 million year-on-year.
As at 31 March 2023, equity attributable to owners of the parent was $1,666.1 million, an increase of $55.4 million from March 31 2022, mainly due to profits earned for the financial year. The Group reported total assets worth of $1,983.2 million as of March 31, 2023, an increase of $145.0 million the same time last year. The Group’s cash balance was $633.0 million.
The Group reported the strongest recovery of flight activities since the pandemic with border restrictions mostly lifted with Line Maintenance unit in Singapore recovering to about 79% of pre-pandemic volume in March 2023
Going ahead, the Group will remain vigilant on management of rising costs and drive continuous improvement in productivity and efficiency across our operations, whilst focusing on workforce training and upskilling.