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SSP Group plc (LSE:SSPG), a leading global food and beverage operator, announced third-quarter trading results with group sales increasing 4% year-on-year on a constant currency basis, matching a 4% like-for-like sales growth. The company reported major disruptions in its APAC & EEME region, where Gulf markets operated at roughly 65% of prior year levels due to the Middle East conflict. Despite these regional challenges, SSP confirmed it remains on track to meet full-year targets, supported by sustained trading momentum in three of its four regions.
Key Points
- SSP Group plc (LSE:SSPG) employs about 49,000 people across over 3,000 units in 38 countries, focusing on travel location food and beverage outlets in airports, train stations, and similar hubs.
- In Q3 2026, group sales rose 4% year-on-year on a constant currency basis with a 4% like-for-like sales increase, amid notable regional disparities.
- Gulf markets operated at approximately 65% of prior year levels during Q3, while the UK & Ireland region achieved the strongest performance with 11% like-for-like sales growth.
- For the nine months ended 30 June 2026, group sales increased 5% on a constant currency basis, including a 5% like-for-like sales rise.
- SSP has completed a376m of its a3100m share buyback programme launched in October 2025 and maintains full-year EPS guidance of 13.6 a314.8p, alongside free cash flow improvement above a3100m.
UK & Ireland Achieves Double-Digit Like-for-Like Sales Growth Driven by Enhanced Customer Offering
The UK & Ireland region delivered the strongest Q3 results for SSP, with sales up 8% year-on-year on a constant currency basis and like-for-like sales growth of 11%. This robust performance benefited from favourable seasonal trading during summer months and was attributed to a strengthened customer proposition and solid operational execution across the company’s outlets in airports, train stations, and travel hubs within the region.
The region also gained a modest advantage from lapping last year’s M&S cyber incident, which had disrupted trading during the comparable period. Representing a significant portion of SSP’s revenue, the UK & Ireland region’s resilience and operational improvements offset challenges elsewhere, particularly in the Middle East, highlighting the effectiveness of SSP’s ongoing operating improvement initiatives.
Middle East Conflict Causes Sharp Decline in Gulf Markets and APAC & EEME Region
The APAC & EEME region, covering Asia Pacific, the Eastern Mediterranean, and the Gulf—accounting for 12%, 2%, and 2% of annual group sales respectively—experienced the most severe disruption. Gulf markets traded at about 65% of prior year levels in Q3 due to the Middle East conflict, resulting in a 35% like-for-like sales decline in Gulf operations, as detailed in the company’s regional breakdown.
The conflict’s impact extended beyond the Gulf, reducing connecting passenger volumes across the wider region. The Eastern Mediterranean and Asia Pacific reported like-for-like sales growth of just 3% and 2%, respectively, both below expectations. Overall, APAC & EEME recorded a 2% year-on-year decline in like-for-like sales in Q3, with quarterly momentum falling 10% quarter-on-quarter amid escalating conflict effects.
North America Demonstrates Stability with Moderate Growth Despite Passenger Challenges
In North America, SSP posted a 4% year-on-year sales increase on a constant currency basis during Q3, supported by 2% like-for-like sales growth. This was achieved despite softer passenger numbers late in the quarter, indicating gains in market share or pricing improvements. The company credited menu enhancements, service quality, and outlet innovations for the positive like-for-like growth.
Organic growth also contributed, with a 2% sales increase stemming from additional restaurants within SSP’s existing airport footprint. This measured expansion strategy highlights SSP’s ability to grow its presence while maintaining operational effectiveness amid broader market softness.
Continental Europe Maintains Steady Sales While Focusing on Profitability Initiatives
Continental Europe reported flat year-on-year sales on a constant currency basis in Q3, alongside 2% like-for-like sales growth. The company emphasized prioritizing profitability improvements over volume expansion in the region, focusing on pricing discipline, cost control, and outlet portfolio optimization.
SSP is progressing with actions from its European Rail review to enhance performance in rail-based food and beverage operations. This targeted operational focus, combined with modest sales growth despite economic and travel headwinds, suggests the region is stabilizing and positioning for margin expansion rather than volume-driven growth.
Nine-Month Results and Currency Effects Inform Full-Year Outlook
For the nine months ending 30 June 2026, SSP’s group sales increased 5% on a constant currency basis, including a 5% like-for-like sales rise. This indicates stronger momentum in earlier quarters before the Middle East conflict’s intensified impact in Q3.
Regarding currency effects, at spot rates as of 22 July 2026, SSP expects a revenue impact of +0.3% and an operating profit impact of -1.6% compared to 2025 averages. This suggests currency translation and hedging arrangements may pressure margins in the near term. The company did not disclose details on hedging or the precise translation impact.
Full-Year Guidance Reaffirmed Amid Operating Environment Uncertainty
Despite Middle East challenges, SSP reported group trading aligned with expectations through Q3 and reaffirmed its full-year guidance, assuming the operating environment remains stable. The guidance includes EPS of 13.6 a314.8p post-share buyback, free cash flow exceeding a3100m (pre-dividend and pre-buyback), and progress toward a 20% medium-term ROCE target.
The company highlighted focus on controllable factors like customer experience and operational delivery during peak summer trading. SSP is advancing its 'Focus 26' operational plans aimed at enhancing profitability, cash flow, and investment returns. The conditional guidance underscores potential risks if Gulf traffic or travel patterns deteriorate further. Full-year results are scheduled for release on 8 December 2026.
Share Buyback Programme Nears Completion with a376m Executed
SSP has completed a376m of its a3100m share buyback programme initiated in October 2025, representing 76% completion. The company has not provided timing for completing the remaining a324m. The buyback aims to enhance shareholder returns and optimize capital structure, with EPS guidance reflecting the reduced share count post-buyback.
This progress demonstrates confidence in SSP’s cash generation despite Q3 operational headwinds. The announcement did not disclose average buyback prices or share quantities repurchased during this period.
Diversified Global Footprint Provides Resilience Across Travel Verticals
SSP operates approximately 3,000 units in 38 countries with around 49,000 employees, specializing in travel location food and beverage outlets including airports, train stations, and travel hubs. Its portfolio covers six formats—sit-down and quick service restaurants, bars, caf e9s, lounges, and food-led convenience stores—featuring international, national, and local brands. This geographic and format diversification offers structural resilience against localized disruptions, although the Middle East conflict highlights vulnerabilities in concentrated regions.
The global network’s interconnected travel hubs mean shocks in one region can cascade elsewhere, as seen with the Gulf disruption impacting APAC & EEME. Nonetheless, positive performance in North America, Continental Europe, and the UK & Ireland demonstrates the diversified model’s effectiveness in managing geopolitical shocks.
Operational Excellence and European Rail Strategy Support Medium-Term Profitability Gains
SSP’s 'Focus 26' programme and regional initiatives underpin its commitment to operational excellence. In Continental Europe, implementation of European Rail review recommendations targets optimization of rail-based operations. The company’s multi-regional approach focuses on proposition quality in North America, profitability in Continental Europe, and operational delivery in the UK & Ireland to drive value creation.
These initiatives align with SSP’s goals of boosting profitability, cash flow, and returns on investment, supporting full-year targets of free cash flow above a3100m and ROCE progression toward 20%. While details of 'Focus 26' were not disclosed, progress suggests steady implementation.
This article is for informational purposes only and does not constitute investment advice. All facts are based on SSP Group plc’s Q3 2026 trading update dated 28 July 2026. Readers should not rely solely on this article for investment decisions. Past performance and forward-looking statements are not guarantees of future results. The company’s guidance is subject to risks including geopolitical developments, travel demand fluctuations, and currency volatility. Investors should consult qualified financial advisors and review full company disclosures before making investment decisions.
