The global travel concession operator posted 29% and 22% year-on-year revenue growth in North America and Asia Pacific respectively for the six months ending 31 March 2024
.jpg.aspx?lang=en-GB&width=700&height=525)
An SSP-owned Upper Crust site at Helsinki Rail Station, Finland | Photo credit: SSP Group
SSP Group has reported double-digit revenue growth across all regions globally, with particularly strong performances across North America and Asia Pacific driving robust half-year sales and EBITDA.
The travel concession operator achieved 19% year-on-year revenue growth in the six months ending 31 March 2024 to reach £1.5bn ($1.9bn), with like-for-like sales increasing 12% and group EBITDA rising 16% to £106m ($134m).
SSP Group, which operates 2,900 food and beverage travel hub outlets across 37 markets globally, posted 29% year-on-year revenue growth in North America to reach £370m ($470m) and 22% across Asia Pacific, Eastern Europe and the Middle East to £223m ($283m).
The two business segments were also the greatest drivers of EBITDA growth during the period, at 45% and 26% respectively.
Sales in the UK and Ireland increased 20% year-on-year to £392m ($498m) as a result of increased passenger traffic, while SSP Group’s revenues in Continental Europe grew 11% to £533m ($678m).
Profitability in Continental Europe was hindered by a heightened level of renewals in Nordic markets and ongoing industrial across rail networks in France and Germany.
“The first half has been a period of continued momentum, and we’ve made good strategic and financial progress. Our momentum is being supported by tailwinds from the high structural growth of the markets in which we operate, our proven ability to win and retain high-returning contracts and by our value creating acquisitions,” said Patrick Coveney, CEO, SSP Group.
SSP Group’s trading momentum has continued into the second half of its financial year, with group sales from 1 April –12 May 2024 up 14% year-on-year. North America sales in the six weeks have increased 28%, Asia Pacific and EEME 25%, UK and Ireland 9% and Continental Europe 5%.
“We are well set to capitalise on what we anticipate will be a summer of strong demand in all our markets – including Continental Europe, where the Olympics and the European Championships will help boost footfall in airports and stations,” Coveney added.
SSP Group, which posted annual sales of £3bn ($3.8bn) in the 12 months ended 30 September 2023, expects revenues to increase in the second half of the year to £1.8bn ($2.3bn).