SSP Groups, owner of Upper Crust, reported profit growth in the third quarter and anticipates better growth across the UK’s outlets. However, SSP has revealed that they were having “disappointing” sales in Europe during the last financial year, to which the company seems to have recovered.
The group claims to have raised operating profit by 23% to £206m, up from £167m last year. SSP Groups’ pre-tax profit rose by 36% making it to £118.6 million. The firm had strong sales growth which was followed by year-on-year revenue growth to £3.4bn.
SSP Group’s Promising 2024 Performance
SSP Group is a London-based firm that runs cafes, bars, and restaurants at railway stations and airports. The firm performed well in North America, the UK, and Asia-Pacific, which compensated for the “disappointing” performance in continental Europe.
Patrick Coveney, Head of SSP Groups said, “SSP has strong fundamentals and benefits from the global travel market’s sustained long-term growth trends This was visible in the FY24 performance in three of our four regional markets.” He also mentioned that the company performed underwhelmed in Continental Europe, impacting the Group EPS and free cash flow.
Upper Crust Challenges Traditional Market Assumptions
Trading of any business is impacted by the increased revenue and unexpected quarterly reports. However, SSP Groups’ results, particularly from Upper Crust have broken this myth, setting an example of how market trends don’t always align with traditional trading.
Many companies have outperformed expectations of Wall Street with their quarterly reports but they didn’t see the stock surge as prominent as SSP Group. The early trade had raised the share of SSP by 10% after reporting a 23% growth in annual profit.
European Challenges for SSP Group
SSP Group is facing sluggish sales in continental Europe, damaging the overall profit of the firm. Coveney said that SSP Group is focusing on accelerating its profit recovery plan in continental Europe by increasing returns from several renewed and extended contracts.
SSP Group Reports Strong Profit Growth
The firm has reported that the first eight weeks of trading in a new financial year have been encouraging, as revenue goes up by 13% to the same period last year. SSP Group has forecasted the next year’s revenue growth somewhere between £3.7bn-£3.8bn and operating profit of £230m-£260m.
The company believes that the increasing number of passengers and the benefits of its recent investment will cut off the cost pressure, which was expected for next year due to the budget.
SSP Group has demonstrated solid profit growth, particularly in North America, the UK, and Asia-Pacific, which helped offset challenges in continental Europe. Despite the slower performance in Europe, the company is confident in its recovery plan and future growth, supported by increasing passenger numbers and strategic investments. With a positive outlook for the next financial year, SSP is poised to continue its expansion, expecting further revenue and profit growth, making 2024 a promising year for the business.
