SSP Group revenues rise 17% to £3.4bn in FY24
The group has performed well in North America, the UK, and APAC and EEME, having benefited from strong sales growth and operating margin improvements year-on-year
Travel caterer SSP Group has reported that revenues rose 17% to £3.4bn in the year ended 30 September, as operating profits jumped by 32% to £206m within the range of its planning assumptions.
The group has performed well in North America, the UK, and APAC and EEME, having benefited from strong sales growth and operating margin improvements year-on-year.
However, SSP had a “disappointing” run in Continental Europe, as operating profits in the region were impacted by slow recovery and strikes in the rail sector, weak Motorway Service Area (MSA) trading in Germany, and the scale of the renewal programme and operational execution, including those related to the Olympics.
SSP maintains that the impact of one-off trading headwinds, principally in Continental Europe, were mitigated by non-recurring benefits, including client compensation.
During the year, SSP also entered into new country markets, having mobilised new contracts in Saudi Arabia and New Zealand; secured new business in Sofia, Bulgaria; and entered into previously announced new joint ventures with Taurus Gemilang in Indonesia.
In addition, the group said that its integration of recent acquisitions are progressing in line with expectations.
Looking ahead to FY25, SSP Group will act on a “focused” agenda to enhance performance and delivery of profit, cash and return on capital.
Thanks to strong revenue growth in the second half of FY24, the group expects this momentum to be sustained in the early weeks of the new financial year in the form of a sales rise of 13% and like-for-like sales growth of 5%.
As a result, SSP expects revenues to come in between £3.7bn and £3.8bn, and operating profits between £230m and £260m in FY25.
The group has already begun a profit recovery plan for Continental Europe, which aims to build its regional operating profit margin from 1.5% to approximately 3% in FY25 – rising to about 5% in the medium-term.
Patrick Coveney, CEO of SSP Group, 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.
“As we reach the next phase of our evolution post-Covid and with strong underlying growth across the group, our focus now is on driving greater value from a strengthened base. In Continental Europe, we are accelerating our profit recovery plan, in particular by building returns from the significant number of recently renewed and extended contracts.”
He added: “I am excited about the prospects for our company and look to FY25 and beyond with confidence as we continue to see significant opportunities for SSP to drive compounding long-term growth and deliver shareholder returns.”
