Upper Crust owner SSP expects sales to increase following recovery in air travel
- The company expects EBITDA to be above the December 2022 guidance
The recovery in air traffic means SSP is expecting increasing sales. SSP operates brands ranging from its own Upper Crust to the M&S and Burger King franchises at airports and train stations in more than 30 countries.
In a statement to shareholders, the company said it expected sales of around £3 billion for the year to September 30, with adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of £280 million.
However, earnings per share will be at the lower end of the 7-7.5p previously forecast.
In a statement to shareholders, the food company cited a “sustained recovery in passenger numbers” as the reason for the increase in revenue in recent months
The food company also cited a “sustained recovery in passenger numbers” as the reason for the increase in sales in recent months.
The company said it expected sales from mid-June to the end of September to be 16 percent higher than the same period last year, taking into account currency changes.
That’s better than in the ten weeks to June 11, when sales rose 12 percent year-on-year.
However, taking currency fluctuations into account, the company said sales only rose 10 percent in both periods.
Shares in SSP Group fell 6 per cent to 230p in afternoon trade on Thursday.
The company said: “Our revenue performance is driven by the continued recovery in passenger numbers, particularly in the aviation sector, as well as our stronger customer offering and digital offering.”
“In addition, sales benefited from price increases and further net contract gains.”
The company said it had struggled in part because of the pound’s appreciation against other currencies it does business with.
Patrick Coveney, chief executive of SSP, said: “We have a good year-end and there is real momentum across the business as we enter the 2024 financial year.”
“Our focus on higher-growth markets such as North America and Asia Pacific, as well as our continued efforts to improve our capabilities and increase efficiency, are delivering strong results.”
“Looking forward, we continue to see significant opportunities for SSP to drive growth and earnings.”
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