THE acquisition target of Sats : S58 -4.67% &ndash Worldwide Flight Services (WFS) &ndash has posted a 16.5 per cent jump in its adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) to 58.7 million euros (S$83.7 million) for the fourth quarter to December.

 

Adjusted Ebitda is defined by WFS as Ebitda plus income tax and correction of non-recurring items such as restructuring costs.

 

If the acquisitions WFS made in the United States in 2021 had been consolidated from January 2021 (pro forma 2021 results), then the adjusted Ebitda would be 7.4 per cent lower year on year, according to its preliminary results published on Monday (Feb 13).

 

The global air cargo handler based in Paris, which is being acquired by Singapore&rsquo s ground handler and in-flight caterer Sats pending regulatory approvals, reported 514.4 million euros in revenue, 19.9 per cent higher year on year. When compared to pro forma results, this was up 8.9 per cent. This improvement in revenue was due to strong performance from its ground handling and ancillary services, and forex gains, WFS said.

 

Cargo accounted for about 74.9 per cent of turnover, or 385.4 million euros, with ground handling and ancillary services making up the remaining portion. Cargo turnover was 13.6 per cent higher year on year, while turnover from ground handling and ancillary services rose 43.9 per cent.

 

But compared to pro forma results, cargo revenue improved by 3.9 per cent while revenue from ground and ancillary grew 26.9 per cent.

 

Gross profit from cargo was 80.1 million euros, up 7.1 per cent, while gross profit from ground and ancillary surged about 110 per cent to 14.7 million euros. Total gross profit was 16.1 per cent higher at 94.8 million euros.

 

When compared to its 2021 pro forma results, gross profit from cargo was, however, 6.4 per cent lower than the year-ago period. In contrast, ground and ancillary gross profit increased by 61 per cent. Total gross profit was flattish, up 0.1 per cent.