UK. Leading food & beverage concessionaire SSP Group today reported a +18.7% leap in first-quarter sales year-on-year, or +4.3% on a constant currency basis. The report covers the period from 1 October to 31 December 2016.
On a constant currency basis the revenue increase comprised like-for-like sales growth of +2.4% and net contract gains of +1.9%.
SSP noted: “We completed the initial investment to create a joint venture with Travel Food Services (TFS) in India in December 2016 and this added a further +1.1% to sales, bringing the total group revenue increase in the first quarter to +5.4%. We expect to have acquired the initial 33% stake in TFS in full by the end of February 2017.”
As reported, SSP Group is creating a joint venture in India, under which it will eventually own a 49% stake in Travel Food Services Private Limited.
SSP’s like-for-like sales growth in the UK and Continental Europe remained positive, driven by increased air passenger numbers. In North America, positive trends in 2016 have continued through the first quarter of 2017, said SSP. In the Rest of the World, like-for-like sales growth is “in line with expectations” and “the pipeline of new contracts remains encouraging”.
Trading results from outside the UK are converted into Sterling at the average exchange rates for the year. The overall impact on revenue of the movement of foreign currencies (principally the Euro, US Dollar, Swedish Krona and Norwegian Krone) in the first quarter compared to the same period last year was about +13%. If the current spot rates were to continue throughout the remainder of FY 2017, SSP said it would expect a positive currency impact on full year revenue of approximately +7%.
The company concluded: “The new financial year has started in line with our expectations and the pipeline of new contracts is encouraging, although it is always difficult to predict the precise timing of the openings of new units. While a degree of uncertainty always exists around passenger numbers in the short term, we continue to be well placed to benefit from the structural growth opportunities in our markets and our programme of operational improvements.”
