SSP holds guidance as LFL sales grow 6%

(Sharecast News) - Travel food outlet operator SSP Group held annual guidance after like for like sales grew 6% in the first quarter driven by continued structural growth across the travel industry around the world. The company, which operates the Upper Crust and Ritazza chains at airports and train stations, on Tuesday said group sales rose 14% on a constant currency basis in the three months to December 31.

regionally, North America sales grew by 17%, while In continental Europe, sales growth of 5% reflected a solid performance despite the 1% negative impact of from the exit of 13 unprofitable MSA sites in Germany, with further exits expected through the year as part of the regional recovery plan.

UK sales rose by 9%, driven by a strong like-for-like sales performance, reflecting good passenger numbers in the air sector and fewer rail strikes compared with 2023.

In Asia-Pacific and Eastern Europe and the Middle East, sales increased by 41%, with strong like-for-like growth across the region, driven by increasing passenger numbers, and a benefit from acquisitions - most notably ARE in Australia, which was acquired in May last year.

These factors more than offset a 10% sales hit reflecting the deconsolidation of the AAHL joint venture in India.

SSP is guiding annual revenue to be within a £3.7 - £3.8bn range with a corresponding underlying operating profit of £230m - £260m.

Reporting by Frank Prenesti for Sharecast.com