Upper Crust-owner SSP shares rise 3% on profit outlook for food and coffee group         

Increased travel boosted demand at coffee and sandwich retailer's outlets at airports and railway stations

Upper Crust-owner SSP, where Patrick Coveney is CEO, sees improved profit outlook   

Upper Crust owner SSP flagged upbeat annual profit expectations, as summer travel and increased traffic in North America underpinned robust demand in the outlets at airports and railways of the coffee and sandwich retailer. 

Shares in the company, which Patrick Coveney joined last year as chief executive after holding the top job at sandwich maker Greencore, operates food and beverage outlets at train stations and airports in 37 markets, rose 3% in London trade. 

Sales at restaurants and stores in passenger locations have rebounded as business and leisure travel are back to pre-pandemic levels, while companies like SSP raised prices to keep up with high costs.

North America market revenues in the first half of the year were at 127% of 2019 levels, with the region on its path to being the largest revenue contributor to the group, the company said.

However, its UK and Ireland market, which has relatively larger rail operations than other regions, lagged, partly hurt by the British railway strikes, with recovery at 85% of pre-pandemic levels.

Recovery in rail since the pandemic has been slower than the recovery of air, Mr Coveney said. He added the air business in the UK was witnessing the positive recovery trends that were seen in its channels and other markets.

The company has linked with brands Breakfast Club and independent craft brewer BrewDog in Britain, where it expects to open three outlets this year, with the first BrewDog bar at Gatwick Airport.

The group expects core profit for the year to come at the upper end of its expectation of £250m to £280m. "If it can continue its current trajectory, we can see further share price gains over the coming 12 months," Mark Crouch, analyst at social investing network eToro, said. 

• Reuters. Additional reporting Irish Examiner