SSP Group reveals double-digit Q3 sales growth
SSP Group, a leading operator of restaurants, bars, cafes and other food and beverage outlets in travel locations across 37 countries, has issued a Trading Update covering the third quarter (Q3) of its 2024 financial year (April 1 to June 30) and the nine-month period ended June 30, 2024.
According to the company, the second half of the financial year has started well, with the positive momentum in H1 continuing into Q3, with expectations for the full year 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%.
The SSP Group Trading Update covered Q3 of its 2024 financial year (April 1 to June 30)
Led by an increasing demand for leisure travel, SSP noted 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%, with SSP noting 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 October 1, 2023, to June 30, 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.
“Our expectations for the year, as outlined at our Interim Results on 21 May 2024, remain unchanged,” SSP Group stated. “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.”
