Upper Crust owner SSP expects increase in revenue after recovery in air travel
Upper Crust owner SSP expects an increase in turnover after the recovery of air traffic
- The company expects EBITDA to be on the higher side than the December 2022 forecast
The recovery of air traffic has led SSP to expect revenues to rise. SSP operates brands ranging from its own Upper Crust to 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 for the year to September 30 to be around £3 billion, with underlying earnings before interest, tax, depreciation and amortization (EBITDA) of £280 million.
However, earnings per share will be at the lower end of the previously forecast 7-7.5p.
In a statement to shareholders, the food company cited a “continued recovery in passenger numbers” as the reason why revenues have increased in recent months.
It also said the food sector cited a “continued recovery in passenger numbers” as a reason why revenues have risen in recent months.
The company said it expects sales for mid-June to the end of September to be 16 percent higher than the same period last year, taking into account currency changes.
This is better than the ten weeks to June 11, when sales rose 12 percent year-on-year.
But when currency fluctuations are taken into account, the company said sales rose only 10 percent in both periods.
SSP Group shares fell 6 percent to 230p in afternoon trading on Thursday.
The company said: ‘Our revenue performance is driven by the continued recovery in passenger numbers, particularly in the airline sector, but also by our stronger customer offering and digital proposition.
“In addition, revenues have benefited from price increases and further net contract wins.”
The company said it had struggled in part because of the strengthening of the pound against other currencies it earned.
Patrick Coveney, CEO of SSP, said: “We ended the year on a strong note 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 enhance our capabilities and increase efficiencies, is delivering strong results.
“Looking ahead, we continue to see significant opportunities for SSP to drive growth and returns.”
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