SSP Group reports positive fourth quarter trading in most markets

A licensed Starbucks store at Edinburgh Airport, operated by SSP | Photo credit: SSP Group

SSP Group has reported positive fourth quarter trading globally, led by sustained sales momentum in its key North America and Asia Pacific markets. 
 

The UK-based travel concession operator, which operates 2,900 food and beverage outlets in travel hubs across 38 markets globally, achieved 12% year-on-year total sales growth in the three months ending 30 September 2024. Group like-for-like sales growth reached 6%. 

Fourth quarter sales in SSP Group’s Asia Pacific, Eastern Europe and the Middle East segment increased 24% year-on-year, led by strong performances in Hong Kong, Egypt and Australia – where trading was boosted by the acquisition of Airport Retail Enterprises Pty Ltd (ARE) in May 2024. 

North America sales rose 16% during the period, driven by additional food and beverage units at Denver International Airport, transferred under its Midfield Concessions Enterprise acquisition, as well as five restaurants and bars across Calgary Airport and Edmonton Airport, acquired from Canada’s ECG Ventures Limited (ECG) in December 2023. 
 

UK sales increased 12%, with like-for-like sales growth at 9%. SSP Group said it has seen a ‘material improvement’ in the performance of its UK business, driven by high airport footfall during the summer and less rail disruption compared to the same period in 2023. 

In a press release, SSP Group CEO Patrick Coveney highlighted challenges in some parts of its Continental European business, with fourth quarter revenues in France and Germany below expectations. However, a strong performance in Spain and key Mediterranean holiday destinations lifted year-on-year segment sales growth to 5%. 

In September 2024, SSP Group appointed former JDE Peet’s and Sodexo executive Satya-Christophe Menard as CEO of its Continental Europe business, to focus on driving profitability across its 13 markets in the region.  

“There has been good trading momentum across our business throughout Q4. Our North America, Asia Pacific & EEME regions have continued to perform ahead of, or in line with, our plan and we have seen a material improvement in the performance of our UK business. We have had challenges in some parts of our Continental European business, which we are addressing through a series of actions that will build margins. Overall, this year, we expect the group to deliver a significant increase in year-on-year profitability and margins,” Coveney said. 

SSP Group’s fourth quarter trading update forecasts full-year revenues of approximately £3.5bn ($4.6bn) on a constant currency basis – which would represent a 17% increase on 2023. Full-year operating profit is expected to reach £210m ($275m), with the travel concession operator scheduled to release its consolidated full-year results in December 2024.