19th Jul 2016 06:58
LONDON (Alliance News) - SSP Group PLC on Tuesday said its third-quarter performance was in line with expectations, as revenue benefited from the recent weakness in sterling.
SSP, which operates food and beverage outlets in travel locations, said total revenue in the three months ended June 30 grew by 9.0% year-on-year, boosted by the weakening of sterling against major European currencies.
On a constant currency basis, total revenue rose by 4.8% while like-for-like sales rose by 3.0%.
SSP said sales in the UK were robust, continuing to benefit from passenger growth in the air sector. Continental Europe remained mixed, with a good performance from Spain but weaker trading in France and Belgium resulting from the recent terrorist attacks in Paris and Brussels.
Sales growth in North America also was driven by passenger growth in the air sector, but sales in the Rest of the World continued to be hit by a fall in passenger numbers in Egypt and an ongoing slowdown in passenger growth in China.
In the nine months to June 30, total revenue increased by 6.0% year-on-year and by 5.5% on a constant currency basis, while like-for-like sales rose by 3.2%.
SSP added that if current exchange rates continue, it expects to see a 3.0% benefit to revenue in the full year.
"The second half of the financial year has started in line with our expectations. Whilst a degree of uncertainty always exists around passenger numbers in the short term, we are well placed to continue to benefit from the structural growth opportunities in our markets and to create further shareholder value," SSP said in a statement.
SSP will release its full-year results for the year ending September 30 on November 29.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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