The UK-based travel concession operator posted 25% year-on-year sales growth in its largest market, North America, while rising air passenger numbers and recent acquisitions lifted in Asia Pacific revenues for the third consecutive quarter
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An SSP Group-operated Starbucks store at Edinburgh Airport, Scotland | Photo credit: SSP Group
SSP Group has reported positive third quarter trading across its global operations led by strong sales growth in North America and Asia Pacific.
The travel concession operator achieved 15% year-on-year group sales growth in the three months ending 30 June 2024, with total like-for-like sales increasing 6%.
SSP Group, which operates 2,900 food and beverage travel hub outlets across 37 markets globally, posted 25% year-on-year revenue growth in North America, boosted by increased leisure travel. The group’s May 2023 acquisition of Michigan-based food and beverage franchise operator Midfield Concessions added 14% to SSP group’s North American sales during the quarter.
Sales in Asia Pacific, Eastern Europe and the Middle East collectively grew 33% year-on-year, driven by increasing passenger numbers across Asia Pacific and its recent acquisition of Airport Retail Enterprises Pty Ltd (ARE) in Australia.
SSP Group expects a further trading boost in Asia Pacific over the next 12 months following a new contract at New Zealand’s Christchurch International Airport and joint venture PT Taurus Gemilang (TG Group) to operate airport F&B outlets in Bali and Surabaya, Indonesia.
The UK-based group also posted ‘solid’ 7% sales growth in Continental Europe and 12% growth in the UK following a rise in air travel passenger numbers and fewer incidences of railway industrial action compared with the same period in 2023.
Group sales for the nine months ending 30 June 2024 are 15% higher than a year ago, with SSP forecasting full-year revenues will reach £3.3bn ($4.2bn). If achieved, sales for the 12 months ending 30 September will be 10% higher than in 2023.