SSP, key operator of food and beverage outlets in travel locations worldwide, has issued its Trading Update for the first quarter of its financial year ending 30 September 2017, covering the period from 1 October to 31 December 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 firm 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%.
Total group revenue growth at actual exchange rates was 18.7%. SSP expects to have acquired the initial 33% stake in TFS in full by the end of February 2017.
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 our expectations. The pipeline of new contracts remains encouraging.
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.
Whilst a degree of uncertainty always exists around passenger numbers in the short term, SSP continues to be well placed to benefit from the structural growth opportunities in our markets and our programme of operational improvements.