SSP sees lower FY profit on weaker NAmerican passenger numbers

(Sharecast News) - Airport and rail food outlet operator said it expected full-year operating profit to be slightly lower than expectations due to weaker passenger numbers in North America during the summer.

The Upper Crust owner said earnings would come in at £230m as it delivered a 4% rise in fourth quarter like-for-like sales and unveiled a new £50m share buyback.

Revenues for the full year were expected to grow by 5% despite the impact of the Iran war on Middle East travel.

"Despite the significant impact of the Middle East conflict on passenger volumes in APAC & EEME, the strength and diversification of our portfolio leaves us well-positioned to deliver group earnings per share for the year in line with current market expectations," said chief executive Patrick Coveney.

Continental Europe delivered broadly stable sales year-on-year, with 3% likeforlike growth as SSP continued to execute its multiyear improvement plan. The group closed its final MSA unit in Germany during the quarter and said regional operating margins are expected to rise to around 3% for the year, up from 2.2%.

In the UK & Ireland, sales increased 5% on the year, supported by 9% likeforlike growth and strong summer trading. Net losses of 3% reflected the temporary impact of scheduled airport redevelopment projects across the estate.

In APAC & EEME, likeforlike sales edged up 1%, with performance held back by lower passenger numbers in the Gulf and key travel hubs following the onset of the Middle East conflict. SSP said Gulf traffic has since rebounded to around 90% of prioryear levels, though volumes across the Eastern Mediterranean, Asia Pacific and Indian regions remained subdued.

Reporting by Frank Prenesti for Sharecast.com