SSP Group: announces Third Quarter Trading Update 2024

London / UK. (ssp) British SSP Group PLC, a leading operator of restaurants, bars, cafes and other food and beverage outlets in travel locations across 37 countries, issues a Trading Update covering the third quarter (Q3) of its 2024 financial year (01 April to 30 June 2024) and the nine-month period ended 30 June 2024.

Group Trading Performance

The second half of the financial year has started well, with the positive momentum in H1 continuing into Q3, and our expectations for the full-year remain unchanged. Group sales in Q3 were up 16 percent on last year, on a constant currency basis, with like-for-like sales growth of six percent, net contract gains of five percent and a contribution from acquisitions of five percent.

		versus Last Year (constant FX rates)					versus Last Year (actual FX rates)
Region		LFL	Net Gains	Acquisitions	Total		Total
N.America		5%	8%	14%	27%		25%
C.Europe		3%	4%	–	7%		6%
UK + I		8%	4%	–	12%		12%
APAC + EEME		15%	4%	14%	33%		26%
Group		6%	5%	5%	16%		15%

Led by an increasing demand for leisure travel, we have seen a strong sales performance across all regions. On a constant currency basis, in North America sales grew by 27 percent year-on-year, including a 14 percent benefit from the acquisitions of Midfield Concessions and Mack II in the US and ECG in Canada. In Continental Europe, sales growth of 7 percent reflected a solid performance across the quarter. In the UK, sales increased by 12 percent, with like-for-like performance up 8 percent, reflecting good passenger numbers in the air sector and a lower incidence of rail industrial action compared with last year. In APAC and EEME, sales rose by 33 percent, as we saw strong like-for-like growth across the region, driven by increasing passenger numbers, and a benefit from the ARE acquisition in Australia, which completed in early May this year.

For the nine-month period from 01 October 2023 to 30 June 2024, total Group revenues increased by 18 percent, including LFL sales growth of 10 percent, net contract gains of 4 percent and a benefit from acquisitions of 4 percent. At actual exchange rates, total Group revenues increased by 15 percent year on year.

Outlook

Our expectations for the year, as outlined at our Interim Results on 21 May 2024, remain unchanged. We are well-positioned for the peak summer trading period and to deliver results in line with our planning assumptions for FY24. The currency impact on our planning assumptions, if current spot rates were to continue through 2024, would also be broadly unchanged since our Interim Results and would represent a translation impact only.

ORR – Railway Station Catering Market Study

On 12 June, the Office of Rail and Road (ORR) published its final report into the railway station catering market in the UK, having previously announced its decision not to refer the market to the Competition and Markets Authority. SSP welcomes the clarity of the ORR’s findings and will continue to work with the network operators in responding to its recommendations.