SSP expects Q1 sales slump due to rising COVID-19 cases in Europe
The company also said it has broadened its revenue streams by selling essentials.
SSP Group said it expects sales in the first quarter to plunge by 80% due to rising COVID-19 cases in Europe after it reported an annual loss.
The company, which owns the Upper Crust and Caffe Ritazza snack chains, said a resurgence in coronavirus infections and further lockdowns in the United Kingdom and continental Europe have resulted in further volatility in passenger numbers, which is expected to continue through the second quarter.
“Whilst we expect passenger numbers to remain subdued over the winter, we are optimistic that, alongside good progress with the vaccination programme, we will see a significant upturn in both domestic and international travel from the spring,” chief executive officer Simon Smith said in an update.
The company added it broadened its revenue streams by selling essentials such as masks and sanitisers, as well as providing food for COVID-19 testing centres at airports and feeding airline staff. Last July, they announced potential 5,000 job cuts in Britain.
SSP had also agreed on further covenant waivers and amendments up to March 2022. It posted an underlying pre-tax loss of 239.6 million pounds (US$325.04 million) for the year ended 30 September, compared with a profit of 203.2 million pounds a year earlier.
