SSP Group stock rebounded strongly today. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
Shares in travel food retailer SSP Group rose sharply today after the company posted solid FY25 results, highlighting good growth in two of its four regional divisions, and a decision to review its under‑performing Continental European rail business.
The food and beverage (F&B) company’s stock closed 11.3% up in London on the back of a revenue rise of 7.8% (at constant currency) to £3.6 billion ($4.8 billion) in the 12 months to September. Operating profit jumped by 12.7% to £223 million ($298 million).
Under statutory IFRS reporting, however, operating profit fell 58% to £86 million, which SSP said in a statement “reflected £183 million of non‑underlying expenses and impairment charges.”
The decision to review its rail business in Continental Europe—the biggest of the F&B giant’s four divisions by revenue at £1,205 million ($1,607 million)—was welcomed by the market, given its weak performance of 2% like-for-like (LFL) growth. A carrot was also dangled— a reward to shareholders arising from the July IPO of SSP’s Indian joint venture Travel Food Services (TFS) with K Hospitality, India’s largest privately held F&B company.
SSP Group CEO Patrick Coveney said in a statement: “We acknowledge there is more to do to strengthen our operational performance, most notably in Continental Europe, where we have now reset our team, model, and balance sheet, and have a range of initiatives underway. In addition, we are launching a wide-ranging review of our rail business in Continental Europe. We are also considering options to realise value for our shareholders in line with the delivery of the TFS free float requirement.”
SSP currently retains a 50.01% stake in TFS and said: “We believe that India’s market potential, combined with TFS’s attractive economic model and market leadership, and a strong ongoing partnership between SSP and K Hospitality, offers a compelling opportunity for growth and returns for the group.”
Rail review and possible reset
Meanwhile in Europe, the continental rail business looks like it will be reset. Alvarez & Marsal, an advisory turnaround firm, is undertaking the review, which has come about as a result of a slower-than-expected recovery in commuter rail traffic and rising F&B competition across the network. Results from the review are expected before SSP’s interim results next May.
The travel F&B player is reshaping its airport and rail footprints as competitors like Avolta are winning contracts and introducing new formats such as hybrid retail and F&B stores. In North America, Avolta subsidiary HMSHost has a dominant position, operating about 1,000 locations across nearly 80 airports and leaning into leisure‑driven demand. In Europe, SSP contends with other major players including Lagardère Travel Retail, which operates across retail and F&B, so investors are watching closely as these rivals jostle for contracts.
SSP’s Shelby & Co bar recently opened at Birmingham Airport with a nod to TV series, Peaky Blinders.
SSP Group
Just last week, SSP won a key concession at JetBlue’s Terminal 5 at New York’s John F. Kennedy Airport for 10 F&B units. That is a boost after FY25 North American LFL revenue flatlined ( down 0.4%), with the second half seeing a decline of 1.9%. However, in the first eight weeks of FY26 (starting 1 October), trading has been more encouraging, running 6% ahead of the prior year on a constant currency basis, including LFL of 2%.
Looking ahead across the global business, SSP’s LFL sales growth is currently at 4% in the first eight weeks of FY26, with all regions in positive territory. Coveney said: “This early momentum, plus the specific actions we are taking to deliver improvements in profit, cash, and return on capital, gives us increasing confidence for the coming year.”
SSP’s European rail review underscores how operators must adapt more quickly to new travel patterns, such as the rise in leisure passengers—also a trend in airports. For investors, the company’s dual strategy—trimming under‑performing assets in Europe while unlocking value in high‑growth markets like India—highlights the balancing act facing global travel F&B players.
* All $ conversions at today’s rate.