REG - SSP Group PLC - Third Quarter Trading Update

SSPAnnouncement

10/07/2024 07:00

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RNS Number : 7630V  SSP Group PLC  10 July 2024

 

10 July
2024
                LEI: 213800QGNIWTXFMENJ24

Q3 TRADING UPDATE

A QUARTER OF STRONG GROWTH WITH SALES UP 16%; 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 covering the third quarter ("Q3") of its 2024 financial year (1 April
to 30 June 2024) and the nine-month period ended 30 June 2024.

Group Trading Performance

The second half of the financial year has started well, with the positive
momentum in H1 continuing into Q3, and our expectations for the full-year
remain 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%.

                      vs Last Year                                 vs Last Year (actual FX rates)

                      (constant FX rates)
 Region               LFL     Net Gains  Acquisitions  Total       Total
 N.America            5%      8%         14%           27%         25%
 C.Europe             3%      4%         -             7%          6%
 UK & I               8%      4%         -             12%         12%
 APAC & EEME          15%     4%         14%           33%         26%
 Group                6%      5%         5%            16%         15%

Led by an increasing demand for leisure travel, we have seen 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%, as we saw 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 1 October 2023 to 30 June 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.

Outlook

Our expectations for the year, as outlined at our Interim Results on 21 May
2024, remain unchanged. We are well-positioned for the peak summer trading
period and to deliver results in line with our planning assumptions(1) for
FY24. The currency impact(2) 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.

ORR - Railway Station Catering Market Study

On 12 June, the Office of Rail and Road ("ORR") published its final report
into the railway station catering market in the UK, having previously
announced its decision not to refer the market to the Competition and Markets
Authority. SSP welcomes the clarity of the ORR's findings and will continue to
work with the network operators in responding to its recommendations.

Notes

1.    Our planning assumptions are for revenue to be within the range of
£3.4-£3.5bn, for underlying EBITDA to be within the range of £345-£375m
and underlying operating profit to be within the range of £210-£235m, all
stated on a pre-IFRS 16 basis and at constant currency based on average rates
for FY23.

2.    If the current spot rates (30 June 2024) were to continue through
2024, we would expect a negative currency impact on revenue, underlying EBITDA
and underlying operating profit (both on a pre IFRS 16 basis) of approximately
(2.0)%, (3.6)% and (4.6)% respectively, compared to the average rates used for
2023.  This currency impact is broadly unchanged since our Interim results.

 

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

Powerscourt

+44 (0) 207 250 1446

E-mail: ssp@powerscourt-group.com

 

NOTES TO EDITORS

About SSP

SSP is a leading operator of food and beverage outlets in travel locations
worldwide, with c.43,000 colleagues in over 600 locations across 37
countries. We operate sit-down and quick service restaurants, cafes, lounges
and food-led convenience stores, principally in airports and train stations,
with a portfolio of more than 550 international, national and local brands.
These include our own brands (such as Urban Crave, which brought the first
"street eats" concept to airports in the US and Nippon Ramen, a noodle and
dumpling concept in the APAC region) as well as franchise brands (such as
M&S Simply Foods, Starbucks and Burger King).

Our purpose is to be the best part of the journey, and this is underpinned by
our aim to bring leading brands and innovative concepts to our clients and
customers around the world, with an emphasis on great value, taste, quality
and service - using digital technology to boost efficiency.

www.foodtravelexperts.com (http://www.foodtravelexperts.com)

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