Shares in airport food company SSP down 9%

SSP operates the food and beverage brands Upper Crust and Ritazza. Photo credit should read: James Manning/PA Wire

Shares in the airport food and drink chain SSP fell by as much as 9% on Tuesday after the operator reported first-half core earnings that were below analysts' forecast.

SSP, which owns Upper Crust as well as coffee chain Ritazza, said that its core earnings for the first half of the year came in at £106m (€124m) which is up from last year's £91m but slightly lower than analysts' average estimate of £107m.

However, the firm said it expects demand for travel to remain resilient and reiterated its expectations for 2024.

SPP chief executive Patrick Coveney said they are “confident in delivering on our expectations for the full year”.

Sales at restaurants and stores in transit locations improved with the company reporting like-for-like sales growth of 12% during the half-year period. 

Prior to joining SSP in 2022, Mr Coveney was the chief executive of Irish sandwich and snack-maker Greencore. 

The company, which is now run by Dalton Philips, saw revenue growth, on a like-for-like basis, of 4.1% in the six months to March 29. 

The company’s adjusted operating profit stood at £28.3m — an increase of 139.8% compared to the same period the previous year.

Additional reporting Reuters