Travel catering specialist SSP reports third quarter sales growth of 14.6%

SSP Kate Swann trading update
SSP chief executive Kate Swann: Increased passenger numbers driving sales growth
12/07/2017 - 09:28
SSP Group plc, a leading operator of food and beverage outlets in travel locations worldwide, has announced revenues increased by 14.6% on a constant currency basis over the period from April 1 to June 30 this year.

Its trading update for the third quarter of the financial year ending September 30 also saw like-for-like sales growth of 3.6%, net contract gains of 7.6% and an additional 3.4% of revenue from Travel Food Services in India (“TFS”), compared with the same period last year.

Chief executive Kate Swann said: “At actual exchange rates, given the weakening of Sterling against most currencies compared with the same period in the prior year, total group revenues for the period increased 21.7% year-on-year.

“Like-for-like sales in the third quarter increased by 3.6%, which included a positive benefit arising from the timing of Easter.

“Like-for-like sales growth in the air sector was driven by increased passenger numbers. Trading in the rail sector has remained softer.

“More recently, we have seen some further impact from the geopolitical activity in the UK and Continental Europe.”

The company reported net contract gains in the third quarter of 7.6%, a performance Swann said benefited from the commencement of operations at Chicago Midway airport, ahead of plan.

“On a temporary basis we are running all the food and beverage operations in Midway until re-development commences. In addition to this, we have benefited from the deferral of some planned unit closures in the quarter.

“Looking forward, we expect net contract gains for the full year to be around 5.0% - 5.5%. The anticipated operating profit contribution from new unit openings will, as normal, include the impact of pre-opening costs.

“TFS has continued to perform well in the quarter, with strong sales, a little ahead of our expectations.”

For the nine-month period from October 1st 2016 to June 30th 2017, total group revenues increased by 10.4% on a constant currency basis, including like-for-like sales growth of 3.2%, net contract gains of 4.8%, revenues from TFS of 2.8% and a negative impact of -0.4% arising from the additional leap year day in 2016.

At actual exchange rates, total group revenues increased 20.4% year-on-year.

Swann added: “Looking forward, whilst a degree of uncertainty always exists around passenger numbers in the short term, particularly in the current environment, we are well placed to continue to benefit from the structural growth opportunities in our markets and to create further shareholder value.”

The group’s results for the year ending September 30 are expected to be released on November 22.

Copyright 2017 Cost Sector Catering
Dewberry Redpoint Limited is a company Registered in England and Wales No : 03129594 Registered Office:
John Carpenter House, John Carpenter Street, London EC4Y 0AN, UK, VAT registered, number 586 7988 48.

Design & Development by Eton Digital