SSP Q3 sales up despite turbulence in Germany, Asia and North America

(Sharecast News) - Bar and restaurant operator SSP said on Tuesday that group sales in Q3 were up 6% year-on-year in Q3 at constant currency rates despite seeing sales momentum soften mid-quarter.

Like-for-like sales rose 3%, while contract gains added 4% and acquisitions chipped in 1%, though exits in Germany and India shaved off 2%.

Sales momentum softened halfway through the quarter, dipping from 5% like-for-like growth early on, boosted by Easter timing, to just 1% over the final seven weeks, impacted by a weaker performance in the UK and Asia. With that said, SSP noted that trading picked up again in early Q4, with LFL growth around 3%.

North American sales rose 5%, though LFL sales slid 2% amid lower passenger volumes as geopolitical jitters weighed on travel, while sales in Continental Europe were broadly flat. UK sales climbed 7%, buoyed by Easter and early strength, although M&S cyber issues disrupted mid-quarter trading. APAC and EEME surged 16%, driven by strong passenger flows in Malaysia, Egypt and Australia.

For the nine months ended 30 June, SSP said group revenues had risen 10% at constant currency, with solid gains across contracts and M&A offsetting some regional pressures.

Looking forward, SSP said it would accelerate cost-cutting and efficiency drives in an effort to support margins and returns, and noted that it remains on track to hit FY targets, currency headwinds notwithstanding.

As of 0805 BST, SSP shares were down 0.28% at 177.50p.

Reporting by Iain Gilbert at Sharecast.com