26th Sep 2019 09:29
(Alliance News) - Food and beverage outlet operator SSP Group PLC on Thursday said it expects a fourth-quarter revenue rise as it reported continued like-for-like growth.
In the quarter ending September 30, SSP expects revenue to rise 10% from a year before, or by 7.8% at constant currency. The company also explained that the trend of like-for-like sales growth that was seen in third quarter, persisted in the fourth.
SSP said: "Total group revenue is expected to increase by approximately 7.8% on a constant currency basis, comprising like-for-like sales growth of approximately 1.8% and net contract gains of approximately 6.0%."
For the full-year the company expects like-for-like sales growth of just under 2.0%.
SSP added: "After another strong quarter, net contract gains for the full year are expected to be just above our previous expectations, at around 5.5%, and as usual they will be accompanied by pre-opening costs. Net contract gains have been driven by significant growth in North America and Continental Europe and we have recently commenced operations in Brazil, a new territory for SSP."
The food retailer reported that the air sector in the UK was "resilient" in the quarter though in rail, performance "remained softer" but benefited from lesser disruption.
Slow passenger growth in the Nordic countries and Spain impacted like-for-like sales in continental Europe. The grounding of Boeing Co's Max 737 aircraft also hurt like-for-like sales growth in North America, SSP said.
Turning to the rest of the world, SSP reported that "good performances in Egypt and the Middle East" offset weaker passenger numbers in China, partly due to the protests in Hong Kong.
Looking further ahead, SSP expects challenges from "ongoing economic uncertainty" and "airline capacity cuts".
The company operates over 300 outlets at airports and railways stations worldwide and owns the brands Upper Crust and Millies Cookies.
SSP will release its full-year results on November 20.
Shares in SSP were 3.4% lower at 645.00 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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