Level 2

More air passengers boost SSP trading in third quarter

By Sean Farrell

Date: Tuesday 17 Jul 2018

More air passengers boost SSP trading in third quarter

(Sharecast News) - SSP said it had a good third quarter and was upbeat about its outlook as the operator of airport and rail station food outlets benefited from increased air travel.

Group revenue in the three months to 1 June rose 7.3% at constant currency, including like-for-like growth of 2.7%.

Like-for-like growth in the UK and Europe was in line with the first half and growth in North America was good, with business in both regions driven by more people flying.

In Asia and other markets sales growth was also good, SSP said. Trading at railway stations was softer, partly due to strikes in France.

The FTSE 250 company's brands include the Upper Crust sandwich chain and Ritazza coffee shops. Its other businesses include Starbucks, Yo! Sushi and Burger King licences.

Trading at new units has been encouraging and new openings are slightly ahead of plan, especially in North America. Operating margin growth was slightly better than in the first half.

The company said: "Looking forward to the rest of the year, our expectations remain unchanged and we anticipate like-for-like sales growth for the Group to remain in the region of 2% to 3%.

"Whilst a degree of uncertainty always exists around passenger numbers in the short term, we are well placed to continue to benefit from the structural growth opportunities in our markets and to create further shareholder value."

SSP shares rose 2% to 671.2p at 08:23 BST.


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