LEI:
213800QGNIWTXFMENJ24
Q1 TRADING
UPDATE
GOOD TRADING MOMENTUM WITH
LFL SALES UP 6%; 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 for
the first three months of its 2025 financial year, covering the
period from 1 October 2024 to 31 December 2024.
Group trading performance
The positive trading momentum we saw
in the first eight weeks of the new year, as highlighted in our
FY24 Results on 3 December 2024, continued through the remainder of
the first quarter, and our expectations for the full year remain
unchanged. For Q1 as a whole, Group sales were up 14% on last year,
on a constant currency basis, including 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
|
Other*
|
Total
|
|
Total
|
|
N.America
|
|
3%
|
8%
|
6%
|
-
|
17%
|
|
14%
|
|
C.Europe
|
|
3%
|
3%
|
-
|
(1)%
|
5%
|
|
1%
|
|
UK & I
|
|
9%
|
0%
|
-
|
-
|
9%
|
|
9%
|
|
APAC & EEME
|
|
14%
|
13%
|
24%
|
(10)%
|
41%
|
|
33%
|
|
Group
|
|
6%
|
5%
|
5%
|
(2)%
|
14%
|
|
11%
|
*'Other' comprises impact from the
staged exit of the German MSA business and the loss of reported
sales from our repositioned AAHL joint venture in India, which is
now reported as an associate and no longer consolidated
Underpinned by continued structural
growth across the travel industry around the world, we have seen a
strong sales performance across all regions. On a constant currency
basis, in North America sales grew by 17% year-on-year. The
acquisitions of the Midfield Concessions business in Denver and ECG
in Canada reached their first anniversary in the quarter and were
treated as like-for-like from November and December respectively.
In Continental Europe, sales growth of 5% reflected a solid
performance notwithstanding an impact of (1)% from the previously
announced exit of 13 unprofitable MSA sites in Germany, with
further exits expected through the year as part of the regional
recovery plan. In the UK, sales rose by 9%, driven by a strong
like-for-like sales performance, reflecting good passenger numbers
in the air sector and a lower incidence of industrial action in the
rail sector compared with last year. In APAC and EEME, sales
increased by 41%, as we saw strong like-for-like growth across the
region, driven by increasing passenger numbers, and a benefit from
acquisitions - most notably ARE in Australia, which was acquired in
May last year. These factors more than offset a sales impact of
(10)% in the region reflecting the deconsolidation of the AAHL
joint venture in India, now accounted for as an associate, as
previously announced.
Outlook
The new financial year has started
well, with good revenue momentum being maintained. Our planning
assumptions1 for the year, on a constant currency basis,
as outlined in our FY24 Results, remain unchanged. If current
currency spot rates were to continue through 2025, the impact on
our planning assumptions would be (0.2)% on revenue and (0.7)% on
operating profit. We continue to anticipate
a split of operating profit between the first and second halves of
FY25 which is consistent with that reported in FY24.
Patrick Coveney, CEO of SSP Group, said:
"We have made a good start to the new financial year. Our
tightened agenda with a focus on driving returns from recent
investments and enhancing efficiency to drive profitability is
progressing well. Performance in the structurally growing and
higher returning regions of North America and APAC & EEME,
where we continue to invest, was particularly pleasing in the
quarter. We are confident in our prospects for the balance of FY25
and beyond."
Notes
1. Our planning
assumptions are for revenue to be within the range of £3.7-3.8bn,
with a corresponding underlying pre-IFRS 16 operating profit within
the range of £230-260m, and EPS within the range of 11.5-13.5p, all
on a constant currency basis.
Planned IPO of Travel Food Services
The process of listing SSP's joint
venture in India, TFS, on the Indian Stock Exchanges is proceeding
as planned. Completion remains targeted for the Spring, depending
on market and other conditions.
Annual General Meeting
SSP's Annual General Meeting will be
held today at 10am at the offices of Travers Smith LLP, at 10 Snow
Hill, London, EC1A 2AL.
2025 half year results announcement
SSP's results for the half year
ending 31 March 2025 are expected to be released on 20 May
2025.
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
Sodali & Co
+44 (0) 207 250 1446
E-mail: ssp@sodali.com
NOTES TO EDITORS
About SSP
SSP Group plc (LSE:SSPG) is a global
leading operator of food and beverage outlets in travel locations
employing around 49,000 colleagues in over 3,000 units across 37
countries. We specialise in designing, creating and operating a
diverse range of food and drink outlets in airports, train stations
and other travel hubs across six formats: sit-down and quick
service restaurants, bars, cafés, lounges, and food-led convenience
stores. Our extensive portfolio of brands features a mix of
international, national, and local brands, tailored to meet the
diverse needs of our clients and customers.
Our purpose is to be the best part
of the journey, and we are committed to delivering leading brands
and innovative concepts to our clients and customers around the
world, focusing on exceptional taste, value, quality and service.
Sustainability is crucial for our long-term success, and we aim to
deliver positive impact for our business while uniting stakeholders
to promote a sustainable food travel sector.
www.foodtravelexperts.com
