SSP Group holds guidance as Q3 sales rise on strong travel demand

(Sharecast News) - Airport and train station food outlet operator SSP Group on Wednesday held annual guidance after third quarter sales rose 16%, driven by increasing demand for leisure travel. Like-for-like revenue was up 6%. The company, which owns the Upper Crust and Ritazza coffee chains, said it still expects revenue of £3.4-£3.5bn, underlying core earnings of £345-£375m and underlying operating profit in a range of £210-£235m.

North America sales grew 27% year-on-year on a constant currency basis, including a 14% benefit from the acquisitions of Midfield Concessions and Mack II in the US and ECG in Canada, the company said in a trading update.

Continental Europe sales were up 7% and 12% in the UK, with like-for-like performance up 8%, reflecting good passenger numbers in the air sector and fewer rail strikes compared with last year.

In Asia-Pacific and EEME, sales rose by 33%, driven by increasing passenger numbers, and a benefit from the ARE acquisition in Australia, which completed in early May this year.

Reporting by Frank Prenesti for Sharecast.com