Airport food outlet operator SSP raises 2024 on air travel boom

A view shows an Upper Crust at Victoria Station in London

A view exhibits an Higher Crust at Victoria Station in London, Britain July 1, 2020. REUTERS/Hannah Mckay/File Picture Acquire Licensing Rights

  • Sees larger 2024 gross sales and revenue
  • Resumes dividend
  • Eight-week income up 22%

Dec 5 (Reuters) – SSP Group (SSPG.L), which operates meals retailers at airports and practice stations, raised its 2024 revenue steering and resumed dividend funds on Tuesday following a rebound in air journey and as prospects spend extra on meals whereas travelling.

Shares in SSP, proprietor of espresso store chain Higher Crust and a Starbucks franchise within the UK, rose 4.6% in morning commerce after falling almost 10% this yr by means of Monday’s shut.

The corporate, whose shops are largely in airports and practice stations around the globe, introduced a dividend of two.5 pence apiece. It suspended dividends in 2020 after the pandemic hit and it entered funding agreements that restricted it from paying returns to shareholders.

The corporate stated it was benefiting from larger common spend per buyer, value hikes and contract positive factors, with income within the first eight weeks of its new monetary yr that started on Oct. 1 up 22% year-over-year.

“On the whole knowledge suggests that folks or shoppers who journey and significantly on leisure journey are nonetheless spending extra,” CEO Patrick Coveney advised Reuters.

He stated SSP’s companies within the Center East haven’t been impacted by the continued Israel-Hamas battle.

SSP, which additionally owns the Rizatta espresso store chain, stated gross sales for 2024 are anticipated to return in between 3.4 billion kilos and three.5 billion kilos ($4.29 billion and $4.42 billion), up from 3.01 billion kilos logged for 2023.

Underlying core revenue is forecast to be within the vary of 345 million pounds-375 million kilos, in contrast with 280 million kilos for the total yr ended Sept. 31.

Analysts on common count on 3.4 billion kilos in gross sales and 353 million kilos in revenue for 2024, in keeping with a company-compiled consensus.

Round 66% of SSP’s complete gross sales got here from airports, whereas 28% got here from rail stations, in keeping with its 2022 annual report.

($1 = 0.7923 kilos)

Reporting by Prerna Bedi in Bengaluru; Enhancing by Rashmi Aich, Nivedita Bhattacharjee and Susan Fenton

Our Requirements: The Thomson Reuters Trust Principles.

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