SSP full-year profits rise despite weakness in Continental Europe
By Michele Maatouk
Date: Tuesday 03 Dec 2024
(Sharecast News) - Upper Crust and Ritazza owner SSP reported a jump in full-year profit and revenue as good performances in North America and the UK helped to offset a disappointing performance in Continental Europe.
In the year to 30 September, pre-tax profit rose 35% to £119m, while earnings before interest, tax, depreciation and amortisation grew 23% to £343m. Revenue was up 17% at £3.4bn, with like-for-like revenue 9% higher.
SSP hailed good performances in North America, UK and APAC & EEME, benefiting from strong sales growth and operating margin improvements year-on-year.
However, its performance in Continental Europe was "disappointing". SSP said operating profit was hit by a slow recovery and strikes in the rail sector, weak Motorway Service Area (MSA) trading in Germany, the scale of the renewal programme and operational execution, including related to the Olympics.
Revenue growth in the second half was "strong", SSP said, with total sales growth of 13% in the first eight weeks and like-for-like sales growth of 5%.
Chief executive Patrick Coveney said: "We have delivered a strong second half performance and I would like to thank our colleagues, clients and brand partners around the world for all their support.
"SSP has strong fundamentals and benefits from the global travel market's sustained long-term growth trends. This was clearly visible in the FY24 performance in three of our four regional markets. However, Continental Europe performed below our expectations, which in turn impacted group EPS and free cash flow."
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