SSP sales rise 6% in Q3 despite UK and Asia slowdown

Food and drink operator, SSP Group, has reported a 6% rise in sales in the third quarter of its financial year, helped by growth in Australia, Egypt and Malaysia, but warned of softer trading in the UK and Asia.

The company, which runs restaurants, cafes and bars in travel hubs across 38 countries, said like-for-like sales rose 3% in the three months to 30 June, with net contract gains contributing 4% to sales and acquisitions adding 1%. However, the impact of disposals in Germany and India cut sales by 2%.

Sales in North America rose 5% year-on-year, though like-for-like sales fell 2% as passenger numbers dropped after recent geopolitical events in the US. 

In continental Europe, sales were flat, with weaker consumer spending weighing on rail stations and the group’s exit from 67 German motorway service sites reducing revenues further.

Meanwhile, UK sales increased 7% thanks to strong Easter trading, though SSP said the cyber incident at Marks and Spencer in April had temporarily hit sales.

In Asia Pacific, Eastern Europe, the Middle East and Africa, sales rose 16%, driven by growth in Malaysia, Egypt and Australia, though trading softened late in the quarter amid geopolitical tensions and air safety incidents in the region.

Across the first nine months of the financial year, group revenues were up 10% at constant currency, including like-for-like growth of 4% and net contract gains of 5%.

According to SSP, it had accelerated cost-cutting and efficiency measures in anticipation of weaker demand in the second half of the year. The group maintained that it was on track to deliver results within its full-year forecasts at constant currency.

Separately, SSP confirmed that its Indian joint venture Travel Food Services (TFS) was admitted to trading on the country’s stock exchanges on 14 July. SSP increased its holding in the business to 50.01% earlier in the month, spending about £12.5m to acquire an additional 1% stake.