- Airport food and beverage group SSP said it achieved positive earnings in the fourth quarter of its financial year amid a recovery in the travel sector.

SSP said positive earnings before interest, tax, depreciation and amortisation (EBITDA) for the three months through June would help it deliver broadly break-even EBITDA for the second half.

In the third quarter, revenue had improved to 27% of 2019 levels, while in the fourth it was expected to be around 47%, resulting in second-half revenue of about 37% of 2019 levels.

In the latest week, revenue was about 53% of 2019 levels.

Looking further forward, SSP said its medium-term outlook of a return to pre-Covid levels of like-for-like revenue and EBITDA margins by 2024 remained unchanged.

'However, the pace of the recovery remains uncertain, and as a consequence, our current planning assumption is for a slightly slower recovery in sales during the 2022 financial year,' it said.

While the company expected a return to EBITDA in the 2022 financial year, it said the out-turn would depend on a number of external factors including the pace of the recovery, higher input cost inflation, the impact of labour availability and the extent of government support schemes.

'Reflecting this, our expectation for profit conversion on reduced sales in 2022 compared to 2019 continues to be at the upper end of a range of 25-30%,' SSP said. Story provided by