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SSP Group Soars in H1 2024, Exceeds Expectations and Sets Sights on Growth

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SSP Group reports a stellar H1 2024 with revenue up 19% YoY. Strategic expansion, strong profitability in key markets, and a focus on customer experience fuel success.

SSP Group, a company in travel food and beverage outlets, delivered a strong first half results of 2024 (H1 2024), exceeding expectations and solidifying its position for future growth. Revenue rose 19% year-over-year on a constant currency basis, fueled by a combination of factors: growth in existing stores, successful contract wins, and strategic acquisitions. This financial performance keeps them on track to achieve their full-year targets.

SSP’s profitability is particularly encouraging based on SSP Group H1 2024 Results. They saw strong contributions from North America and the APAC & EEME regions, reflecting not only faster growth but also efficient conversion of that growth into profit. This highlights their ability to leverage their presence in these high-demand markets.

Beyond financials, SSP has made significant strides strategically. They’ve pivoted their focus towards higher-growth markets, with 39% of their sales now coming from North America and APAC & EEME. This strategic shift is further bolstered by their success in securing major new contracts in key locations like Cincinnati airport and Milan railway station.

SSP isn’t just expanding geographically; they’re also entering entirely new markets. Partnerships have allowed them to establish a foothold in the high-potential New Zealand and Indonesian markets. They’re also committed to enhancing the customer experience, reflected in improved customer ratings and the introduction of new brands, digital initiatives, and sustainability measures.

Looking ahead, SSP remains confident. Trading since the H1 mark has been on target, with total revenue up 14% year-over-year on a constant currency basis in the first six weeks of the second half (H2). Despite potential economic and political uncertainties, they expect to meet their full-year 2024 (FY24) planning assumptions. This includes projected like-for-like sales growth of 6% to 10%, net contract gains of around 5%, and underlying EBITDA within the range of £345-£375 million.

SSP’s medium-term outlook is equally promising. Their strategy focuses on delivering compounding shareholder returns through continued sales growth, particularly in their high-growth markets. They’ll achieve this alongside improved operating margins driven by efficiency programs and technology adoption. Sustainable earnings growth and strategic capital investment with a focus on high returns are also central to their plan.

Finally, SSP is committed to a healthy balance sheet. They plan to achieve deleveraging through organic growth and strategic mergers and acquisitions (M&A). Shareholders can also expect continued returns through dividends and potential share buybacks.

Commenting on the results, Patrick Coveney, CEO of SSP Group, said: “The first half has been a period of continued momentum, and we’ve made good strategic and financial progress. At constant currency, the Group delivered double-digit sales growth in all our geographies around the world – with an exceptionally strong like-for-like sales performance in APAC and EEME. Our momentum is being supported by tailwinds from the high structural growth of the markets in which we operate, our proven ability to win and retain high-returning contracts and by our value creating acquisitions.

“Supporting our top-line growth is disciplined cost management, and we are pleased to have delivered year-on-year EBITDA growth of 24% and to be announcing an interim dividend.

“Trading momentum has continued into the second half, and we are confident in delivering on our expectations for the full year. In particular, we are well set to capitalise on what we anticipate will be a Summer of strong demand in all our markets – including Continental Europe, where the Olympics and the European Championships will help boost footfall in airports and stations. We will also start to realise the benefit of our latest value-creating acquisition in Australia and new market entries in New Zealand and Indonesia.

“As a business we are making good progress on our strategic priorities, thanks to the hard work and commitment of all our colleagues and the support of our clients and brand partners around the world. With our continued momentum and foundations in place for further expansion, we remain confident in our ability to deliver sustainable, compounding growth and returns for all our stakeholders in the years to come.”  

Co-Founder & Chief Editor - TravelDailyNews Media Network | + Articles

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.