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

A male sporting a protecting mask walks past an Higher Crust at Victoria Station in London, Britain July 1, 2020. REUTERS/Hannah Mckay

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  • SSP expects whole-year sales at upper finish of outlook range
  • Flags inflationary pressures
  • Shares down 5%

July 14 (Reuters) – British snack chain organization SSP (SSPG.L) mentioned on Thursday a rapid recovery in vacation meant yearly profits and financial gain margins would be at the higher conclude of its forecasts, even though it warned price pressures and supply chain snags would persist into following yr.

Shares in the owner of the Upper Crust chain uncovered mainly in airports and educate stations fell in excess of 5% in early trade.

There has been pent-up need for summer months journey because pandemic restrictions were being lifted in lots of countries, major to disruptions at airports and lengthier wait situations for passengers.

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But SSP is also struggling with sky large prices and inflationary pressures as nicely as decreased purchaser investing amid a price-of-residing crunch. go through far more

“We are perfectly-positioned to gain from the ongoing restoration of the journey sector, notwithstanding the present-day challenges of airport disruption, labour shortages and industrial motion across certain air and rail markets,” SSP explained in a assertion.

SSP expects yearly income to be at the higher close of its 2 billion to 2.1 billion pounds ($2.5 billion) forecast selection, and main earnings margins of about 6%.

“We see travel concession operators as a way to play the recovery in travel with no the money hazard or ESG problems of investing instantly in transport property like airlines,” Stifel analyst said, referring to environmental, social and governance issues.

SSP mentioned solid restoration in air travel experienced boosted its British isles income, but rail operations were dented by strikes that brought the network close to a standstill above many times last thirty day period.

British rail and transport workers this 7 days voted for strike action in a dispute over spend, threatening more disruption.

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

The London-detailed agency, which operates in 36 countries, stated it was assured it could mitigate the impression of the pressures by rising prices and productivity.

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

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