The UK-based travel food and beverage operator is targeting 33% sales growth in 2023 after posting full-year revenues of $2.7bn
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SSP Gropup revenues grew from 64% of 2019 levels in the first half of 2022 to 90% in the second half | Photo credit: SSP Group
In the 12 months ended 30 September 2022, SSP Group generated £2.2bn revenues ($2.7bn) – 162% higher than for same period in 2021 and 9% above its projected annual sales.
SSP Group said sales momentum had increased across all its markets, with group revenues reaching 78% of 2019 levels over the last year and exceeding full year expectations.
Revenues grew from 64% of 2019 levels in the first six month of 2022 to 90% in the second half of the year.
Moreover, SSP Group said sales are above 2019 levels for the first eight weeks of its new financial year, at 104%, with notable performances in North America (131%) and Continental Europe (108%).
The group achieved an underlying core profit of £142m ($173m), compared to a loss of £108m ($132m) a year earlier.
The UK-based company cited strong leisure travel demand over the summer and autumn months as driving sales at its food and beverage units, which include Upper Crust, Camden Food Co., Ritazza and licensed stores of Starbucks and Pret A Manger.
However, the recovery of business and commuter travel remains slower, SSP Group said.
The company is forecasting revenues of £2.9bn ($3.5bn) in 2023 and £3.3bn ($4bn) in 2024. It expects overall sales for its UK business, which accounts for 28% of total revenues, to reach pre-pandemic levels by the end of 2023.
The company cited new business opportunities in North America, where it currently holds a 10% market share, as paramount to its growth.
“The global air and rail travel sectors are set up for long-term structural growth, consumer demand for quality food offerings in travel locations remains strong, and we have significant head room for growth in multiple markets across the world. North America is central to our growth plans, and we envisage it becoming a much bigger part of the Group over the next few years,” said Patrick Coveney, CEO, SSP Group.
The company said the food and beverage industry should remain ‘structurally resilient’ to pressures on consumer spending and SSP’s geographic diversification will help offset the current challenging macroeconomic climate.
SSP Group has a strong presence in airports and train stations in over 30 countries.
In November 2022, the company acquired 25 of AMT Coffee’s 43 UK outlets from administrators Interpath Advisory. The stores are predominantly located in airports and train stations across the UK and Ireland. The remaining 18 AMT Coffee stores closed with immediate effect, resulting in the loss of around 100 jobs.