Upper Crust owner gets travel recovery boost, but inflation a worry


A man carrying a protective mask walks earlier an Higher Crust at Victoria Station in London, Britain July 1, 2020. REUTERS/Hannah Mckay

  • SSP expects total-calendar year profits at upper conclusion of outlook range
  • Flags inflationary pressures
  • Shares down 5%

July 14 (Reuters) – British snack chain company SSP (SSPG.L) stated on Thursday a rapid recovery in journey meant annual product sales and financial gain margins would be at the higher end of its forecasts, even though it warned price tag pressures and source chain snags would persist into subsequent yr.

Shares in the operator of the Upper Crust chain observed largely in airports and educate stations fell more than 5% in early trade.

There has been pent-up need for summer season vacation given that pandemic constraints ended up lifted in numerous international locations, main to disruptions at airports and extended wait moments for passengers.

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But SSP is also struggling with sky substantial prices and inflationary pressures as perfectly as decreased purchaser expending amid a cost-of-residing crunch. study extra

“We are well-positioned to profit from the ongoing restoration of the vacation sector, notwithstanding the latest problems of airport disruption, labour shortages and industrial motion across selected air and rail marketplaces,” SSP stated in a assertion.

SSP expects annual sales to be at the upper conclusion of its 2 billion to 2.1 billion pounds ($2.5 billion) forecast assortment, and main profit margins of around 6%.

“We see journey concession operators as a way to participate in the recovery in travel without the capital threat or ESG problems of investing instantly in transport assets like airlines,” Stifel analyst reported, referring to environmental, social and governance concerns.

SSP reported sturdy restoration in air travel had boosted its Uk profits, but rail functions had been dented by strikes that brought the community shut to a standstill about numerous times last month.

British rail and transport personnel this 7 days voted for strike action in a dispute above pay, threatening additional disruption.

SSP explained group revenues averaged 72% of its 2019 pre-COVID-19 levels for the 9 months to June 30.

The London-mentioned agency, which operates in 36 nations around the world, claimed it was self-confident it could mitigate the impact of the pressures by increasing rates and productiveness.

($1 = .8435 kilos)

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Reporting by Muhammed Husain in Bengaluru
Editing by Sherry Jacob-Phillips and Mark Potter

Our Benchmarks: The Thomson Reuters Rely on Concepts.

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