SSP Group plc Announces Revenue Results for the First Quarter Ended December 31, 2016; Provides Revenue Guidance for the Full Year Ending September 30, 2017
January 26, 2017 at 02:00 am
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SSP Group plc announced revenue results for the first quarter ended December 31, 2016. Revenue increased by 4.3% on a constant currency basis, comprising like-for-like sales growth of 2.4% and net contract gains of 1.9%. The company completed the initial investment to create a joint venture with Travel Food Services 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%. Total group revenue growth at actual exchange rates was 18.7%. Like-for-like sales growth in the UK and Continental Europe has remained positive, driven by increased passenger numbers in the air sector. In North America the positive trends seen in 2016 have continued through the first quarter of 2017. In the Rest of the World, like-for-like sales growth is in line with expectations.
For the full year ending September 30, 2017, the company would expect a positive currency impact on full year revenue of approximately 7%. The new financial year has started in line with 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. Expectations for the full year remain unchanged.
SSP Group plc is an operator of food and beverage outlets in travel locations worldwide. The Company operate sit-down and quick service restaurants, cafes, lounges and food-led convenience stores, principally in airports and train stations, with a portfolio of more than 550 international, national and local brands. It operates over 600 locations across 37 countries. These include its own brands, such as UrbanCrave, and Nippon Ramen, as well as franchise brands, such as M&S, Starbucks and Burger King. The Companyâs segments include North America, Continental Europe, the UK and APAC and EEME. North America includes operations in the United States, Canada and Bermuda. Continental Europe includes operations in the Nordic countries and in Western and Southern Europe. The UK includes operations in the United Kingdom and the Republic of Ireland. APAC and EEME include operations in Asia Pacific, India, Eastern Europe and the Middle East, and South America.
SSP Group plc Announces Revenue Results for the First Quarter Ended December 31, 2016; Provides Revenue Guidance for the Full Year Ending September 30, 2017