UK's SSP Group Q1 sales up on strong travel demand, keeps annual view

SSP Group SSPG, which operates food outlets at airports and train stations globally, reported a 14% rise in first-quarter sales on Tuesday, boosted by robust travel demand, and left its full-year forecast unchanged.

Shares in the London-headquartered firm, which has franchises such as Burger King and Starbucks, rose 3.2% to 176.9 pence.

Pub and restaurant businesses, which struggled during the pandemic and the cost-of-living crisis, are now more optimistic about growth as people return to outdoor activities and continue to travel in the post-pandemic era.

In its Asia-Pacific and Eastern Europe-Middle East markets, sales rose 41% driven by strong passenger numbers and acquisitions, the company said.

In December, the company had announced its plans to carry out an initial public offering in India for Travel Food Services, its joint venture with K Hospitality Corp.

The sustained momentum from the second half of 2024 into the first quarter should offer reassurance, particularly as high-return regions are performing strongly, said James Wheatcroft, analyst at Jefferies.

The potential for a valuation boost from the joint venture in India, is promising, he added.

Last week, the firm, which operates out of around 600 locations across 37 countries said Geert Verellen would join in April as its new CFO.

SSP, which owns the baked goods brand Upper Crust, said like-for-like sales in the three months to Dec. 31 grew 6% year-on-year.