10 July
2024
LEI:
213800QGNIWTXFMENJ24
Q3 TRADING
UPDATE
A QUARTER OF STRONG GROWTH
WITH SALES UP 16%; FULL YEAR GUIDANCE UNCHANGED
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 (1
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% on last year, on a constant currency
basis, with like-for-like sales growth of 6%, net contract gains of
5% and a contribution from acquisitions of 5%.
|
|
|
vs Last
Year
(constant
FX rates)
|
|
vs 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% year-on-year, including a 14% benefit from the acquisitions
of Midfield Concessions and Mack II in the US and ECG in Canada. In
Continental Europe, sales growth of 7% reflected a solid
performance across the quarter. In the UK, sales increased by 12%,
with like-for-like performance up 8%, 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%, 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 1
October 2023 to 30 June 2024, total Group revenues increased by
18%, including LFL sales growth of 10%, net contract gains of 4%
and a benefit from acquisitions of 4%. At actual exchange rates,
total Group revenues increased by 15% 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 assumptions1
for FY24. The currency impact2 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.
Notes
1. Our planning
assumptions are for revenue to be within the range of £3.4-£3.5bn,
for underlying EBITDA to be within the range of £345-£375m and
underlying operating profit to be within the range of £210-£235m,
all stated on a pre-IFRS 16 basis and at constant currency based on
average rates for FY23.
2. If the
current spot rates (30 June 2024) were to continue through 2024, we
would expect a negative currency impact on revenue, underlying
EBITDA and underlying operating profit (both on a pre IFRS 16
basis) of approximately (2.0)%, (3.6)% and (4.6)% respectively,
compared to the average rates used for 2023. This currency
impact is broadly unchanged since our Interim results.
CONTACTS
Investor and analyst
enquiries
Sarah John, Corporate Affairs
Director, SSP Group plc
Sarah Roff, Group Head of Investor
Relations, SSP Group plc
+44 (0) 7736 089218 / +44 (0) 7980
636214
E-mail: sarah.john@ssp-intl.com
/ sarah.roff@ssp-intl.com
Media enquiries
Rob Greening / Russ Lynch
Powerscourt
+44 (0) 207 250 1446
E-mail:
ssp@powerscourt-group.com
NOTES TO EDITORS
About SSP
SSP is a leading operator of food
and beverage outlets in travel locations worldwide, with c.43,000
colleagues in over 600 locations across 37 countries. We
operate sit-down and quick service restaurants, cafes, lounges and
food-led convenience stores, principally in airports and train
stations, with a portfolio of more than 550 international, national
and local brands. These include our own brands (such as Urban
Crave, which brought the first "street eats" concept to airports in
the US and Nippon Ramen, a noodle and dumpling concept in the APAC
region) as well as franchise brands (such as M&S Simply Foods,
Starbucks and Burger King).
Our purpose is to be the best part
of the journey, and this is underpinned by our aim to bring leading
brands and innovative concepts to our clients and customers around
the world, with an emphasis on great value, taste, quality and
service - using digital technology to boost
efficiency.
www.foodtravelexperts.com