REG - SSP Group PLC - Q1 Trading Update

SSPAnnouncement

28/01/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250128:nRSb8584Ua&default-theme=true

RNS Number : 8584U  SSP Group PLC  28 January 2025

 

 

 
                                         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                                       vs Last Year (actual FX rates)

                      (constant 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 assumptions(1) 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 (mailto: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 (mailto: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 (http://www.foodtravelexperts.com)

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTBRMPTMTTTBRA