SSP Group Q3 Sales Rise 4% as UK Strength Offsets Gulf Disruption

SSP Group has maintained its full-year expectations after reporting 4% like-for-like sales growth during its third quarter, despite a sharp fall in passenger numbers across Gulf travel markets.

The travel food and beverage operator said group sales for the three months ended 30 June 2026 increased by 4% year-on-year at constant currency rates. At actual exchange rates, growth was 5%.

Strong trading in the UK and Ireland did much of the heavy lifting. However, conflict in the Middle East materially affected SSP's APAC & EEME division, with Gulf sales running at approximately 65% of the previous year's level.

Investors can read the original company announcement for the complete regulatory disclosure.

SSP Group's key Q3 figures

Like-for-like sales measure growth from locations that were operating in both reporting periods, helping investors separate underlying trading from expansion or closures.

Q3 measure	Year-on-year change
Group sales at constant currency	4%
Group sales at actual exchange rates	5%
Group like-for-like sales	4%
Net gains from opening and closing locations	1%
Other movements	-1%
Nine-month group sales at constant currency	5%
Nine-month like-for-like sales	5%

The 1% reduction classified as "other" reflected SSP's staged exit from the German motorway service area business.

There were no absolute revenue, profit or margin figures in this update. That limits the conclusions investors can draw about how the sales performance translated into earnings during the quarter.

UK and Ireland delivers the standout performance

The UK and Ireland was comfortably SSP's strongest region in Q3. Sales rose by 8% year-on-year, driven by like-for-like growth of 11%, partly offset by a 3% reduction from net contract movements.

Management attributed the underlying improvement to positive seasonal trading, a stronger customer proposition and robust operational delivery. The comparison also benefited modestly from the previous year's M&S cyber incident.

This is encouraging because the growth was not solely the result of opening more outlets. Existing locations generated a substantial increase in sales, although SSP did not disclose how much came from passenger volumes, pricing or customer spending.

For readers tracking the business beyond this announcement, the SSP Group PLC share page provides a central point for related coverage.

North America grows despite softer passenger numbers

North American sales increased by 4% at constant exchange rates. This comprised 2% like-for-like growth and a further 2% contribution from net gains.

SSP said passenger numbers became more subdued towards the end of the quarter. Even so, improvements to its customer proposition supported positive like-for-like sales, while the company benefited from operating more restaurants across its existing airport footprint.

The result looks reasonably resilient given the passenger backdrop, but the slowdown towards the end of Q3 is worth watching. Travel-location operators are exposed to footfall, so sustained weakness in passenger numbers could make further sales growth harder to achieve.

Continental Europe remains flat

Continental European sales were unchanged year-on-year at constant currency rates, although actual currency movements lifted reported growth to 3%.

Like-for-like sales increased by 2%, but this was offset by the impact of SSP's staged withdrawal from the German motorway service area operation.

Management continues to focus on improving regional profitability through an operating improvement plan. It also reported good progress implementing measures identified by its European Rail review.

That language is constructive, but the update did not quantify expected savings, implementation costs or the region's current profitability. Investors will therefore need to wait for fuller results to assess whether these operational measures are producing a meaningful financial benefit.

Middle East conflict creates the main pressure point

The weakest part of the update was APAC & EEME, which covers Asia Pacific, the Eastern Mediterranean and the Gulf.

Regional like-for-like sales fell by 2% year-on-year and slowed by 10% quarter-on-quarter. SSP linked this directly to the effects of conflict in the Middle East, which reduced passenger numbers in the Gulf and across connected travel hubs.

APAC & EEME market	Q3 like-for-like growth
Asia Pacific	2%
Eastern Mediterranean	3%
Gulf	-35%

For Q3 as a whole, Gulf markets traded at approximately 65% of prior-year levels. Lower connecting traffic also affected Asia Pacific and the Eastern Mediterranean, leaving growth in both areas below management's plans.

APAC & EEME still delivered 5% total sales growth at constant currency because net gains contributed 7%. In other words, expansion helped offset weaker sales at established locations.

The geographical exposure is meaningful but not dominant. SSP said Asia Pacific represents 12% of annual group sales, while the Eastern Mediterranean and Gulf each account for 2%.

Full-year guidance is unchanged

Despite disruption in the Middle East, SSP said group trading remained in line with expectations during Q3. Assuming the operating environment remains substantially unchanged, management continues to expect:

• Earnings per share of 13.6p to 14.8p, after the share buyback.
• Free cash flow above £100 million, before dividends and the share buyback.
• Further progress in return on capital employed towards the medium-term target of 20%.

Return on capital employed, or ROCE, measures how efficiently a business generates operating returns from the capital invested in it.

SSP also reported good progress with its Focus 26 operational plans, which are intended to improve profitability, cash flow and investment returns. However, the company did not provide updated profit, free cash flow or ROCE figures in this announcement.

Foreign exchange remains another consideration. If exchange rates recorded on 22 July 2026 continue for the rest of the financial year, SSP expects a positive 0.3% effect on revenue but a negative 1.6% impact on operating profit compared with the average rates used in 2025.

Buyback moves towards completion

SSP has completed £76 million of the £100 million share buyback launched in October 2025, leaving £24 million of the programme outstanding.

Buybacks reduce the number of shares in circulation and can increase earnings per share, all else being equal. They also use cash, which is why SSP presents its free cash flow target before expenditure on the buyback and dividends.

Previous coverage of the programme is available in the article on SSP Group's trading update and £100 million share buyback.

What investors should watch next

The reassuring feature of this update is that SSP has absorbed a severe Gulf downturn without changing its group expectations. UK and Ireland trading was particularly strong, while North America continued to grow despite softer passenger trends late in the quarter.

The main risk is that management's guidance assumes the current operating environment remains substantially unchanged. A prolonged or broader reduction in Middle Eastern air traffic could place more pressure on like-for-like sales across Gulf locations and connecting hubs.

Investors should also look for evidence that sales growth is converting into stronger margins, cash generation and ROCE. Those figures were not disclosed in the Q3 update, making SSP's full-year results on 8 December 2026 the next important test of operational progress.