SSP Group plans profit recovery and margin growth in Continental Europe
This comes after it reported a ‘disappointing’ performance for 2024.
SSP Group, which operates F&B businesses in travel hubs, is planning to build double its profits in Continental Europe in 2025 as it reported a ‘disappointing’ performance in the region amidst slow recovery, impacts of strikes, and weakened Motorway Service Area trading in Germany.
The group said operating profit performance in Continental Europe was behind their expectations for the year.
In response, the group put in place a five-point recovery plan starting with a change in leadership and the appointment of Satya Menard as a new regional CEO.
The group will also have an intensified and expedited focus on optimising the performance of the large number of new and refurbished units that we have opened this year, including tackling loss-making and low-margin units. The group said it will streamline its management structure and lower cost operating model across the whole region
In addition, actions will also be taken to reduce the cost base through the optimisation of menu and ranges, labour costs, and overheads as well as the continued rollout of digital solutions.
It will also exit its German MSA business by 2026, with 50% of the sites to be exited in H1 FY2025 and actions to minimise losses from remaining operating units.
SSP said it is targeting to increase its regional operating profit margin from 1.5% to approximately 3% in FY2025, rising to 5% in the medium-term.
In its financial report, the group reported a revenue of revenue of £3.4b, up 17%, including like-for-like growth of 9%.
Meanwhile, the group's operating profit reached £206m, up 32% and within the range of the group’s. assumptions.
