Upper Crust owner SSP plans to increase its regional operating profit margin in its struggling Continental European unit to about 3% in the current fiscal, up from 1.5%, and also posted an annual profit rise today, in line with estimates.
Pub and restaurant firms, once severely impacted by the pandemic and the cost-of-living crisis, are now more confident about growth as energy and food cost inflation subsides, and customers regain confidence in their spending.
The London-based group, which runs cafes, bars and restaurants in train stations and airports in nearly 40 countries, reported a 23% jump in core profit to £343m for the year ended September 30.
Profit came in line with company-compiled average analysts' estimates, supported by robust performance in its North American, the UK and Asia-Pacific markets.
The company said performance in Continental Europe - its biggest market in terms of sales, accounting for 35% of overall revenue in 2024 fiscal year - was "disappointing", partly hurt by rail strikes and weakness in its German motorway services business.
"In Continental Europe, we are accelerating our profit recovery plan, in particular by building returns from the significant number of recently renewed and extended contracts," CEO Patrick Coveney said in a statement.
