SSP Group sales rebound 21% in recovery quarter

SSP Group (LSE: SSPG), the travel dining and concessions giant, posted a 21% jump in sales to £788m for the first quarter ended 31 December, underpinned by the continued rebound in passenger traffic. Like-for-like sales were up 14%, the company said today.

The FTSE 250 firm, which operates food and beverage outlets in travel locations worldwide, said net contract gains of 6.9% included a 2.2% boost from acquisitions. It has made a strong start to the second quarter, with “strong organic growth momentum”.

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While remaining alert to economic uncertainties, SSP believes travel demand will hold up well and provide a structural growth story for the sector. For financial 2024, it retained guidance for underlying EBITDA of £345-375m and underlying operating profit of £210-235m.

Shares in SSP initially climbed nearly 3% Tuesday before retreating. The stock has fallen 12% over the past year.