Food-to-go specialist SSP Group has reported encouraging early trading in its first quarter as like-for-like sales rose 5% in the three months to 31 December.
The Upper Crust operator posted an 8% boost in year-on-year sales in the UK & Ireland, with sustained strong like-for-like numbers. The group said it was particularly pleased with the performance in its M&S estate across airports and rail stations. It works in partnership with the retailer in more then 50 Simply Food sites.
Sales growth was slower in wider Continental Europe, with like-for-like sales up just 2%, reflecting weak consumer sentiment and lower spending levels, particularly affecting the rail business, which is currently under review by SSP.
North American sales grew 4% year on year, driven by net gains as the group expands share within the 57 airports in which it operated.
SSP said it was making good overall progress as it aims to improve performance through its ‘Focus 26’ operational plan.
Guidance for the full year remains unchanged.
“We have made a good start to the financial year, with LfL sales growth of 5% in the first quarter,” CEO Patrick Coveney added.
“We are on track against our ‘Focus 26’ operational plan with a range of programmes underway to deliver sustained improvements in profitability, cash and returns on capital. Given this momentum, we remain confident in our prospects for the balance of FY26 and beyond.”
Conroy Gaynor, a senior analyst at Bloomberg Intelligence, said the pace of SSP’s like-for-like sales growth looked unsustainable for the year as a whole.
“The company’s North American traffic remains a drag, and the Continental Europe segment is still stifled by weak consumer spending as it undergoes a transformation to try and boost margin,” he added.
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