SSP Q3 sales improve despite Middle East drag

(Sharecast News) - Food and beverage operator SSP said on Tuesday that trading had strengthened across most regions in the third quarter, although performance in parts of Asia and the Middle East remained under pressure from weaker passenger numbers linked to the conflict in the region.

SSP said group sales were up 4% yearonyear on a constantcurrency basis, with likeforlike growth also at 4%. North America delivered 4% sales growth, including 2% LFL, while continental Europe was broadly stable, with 2% LFL growth as the firm continued to focus on profitability and progressed actions from its European Rail review. The UK and Ireland posted an 8% rise in sales and 11% LFL growth, supported by seasonal trading, a stronger customer proposition and solid operational delivery.

Asia Pacific and SSP's Eastern Europe and Middle East units remained the main drag, with LFL sales down 2% and Gulf markets trading at around 65% of prioryear levels. Eastern Mediterranean and Asia Pacific regions saw softerthanexpected LFL growth of 3% and 2%, respectively, reflecting weaker local and connecting traffic.

For the nine months ended 30 June, SSP said group sales were up 5% on a constantcurrency basis, including 5% LFL growth, with the group highlighting that trading remained in line with expectations through Q3 and that its Focus 26 plan continued to position the business to strengthen profitability, cash flow and returns.

Assuming the operating environment stays broadly unchanged, SSP said it remains on track to meet fullyear expectations.

As of 0905 BST, SSP shares were up 0.87% at 196.20p.

Reporting by Iain Gilbert at Sharecast.com

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