Ssp Group Plc · LSE:SSPG
Ssp — H1 2024 Earnings Presentation
33 slides from Ssp's earnings presentation, May 21, 2024
Slide 1: Interim Results
Interim Patrick Coveney, Group CEO Jonathan Davies;Group Deputy CEO & CFO 21 May 2024 ‘ |
Slide 2: Agenda
Agenda Introduction Financial review Business review Q&A 2) SSP Patrick Coveney Jonathan Davies Patrick Coveney LA“. Mella esr Botello bt /
Slide 3: H1 2024 highlights
• • • • • • • • Note: All figures on an underlying basis and pre-IFRS 16. Performance expressed at constant rates
Slide 4: Oakland Draft House | Oakland Airport
4 44 Oakland Draft House| Oakland Airport
Slide 5: Financial review
Note: All figures expressed on an underlying basis and pre-IFRS 16. Year-on-year growth in Revenue, EBITDA and Operating profit expressed on a constant currency basis
Slide 6: Income statement
1. Stated on a pre-exceptional basis, before non-underlying items.
Slide 7: High sales growth of 19%
Hi sales growth of 19% 2024 H1 First 6 wks of H2 YoY % growth ‘constant currency ‘constant currency North America 8% 8% 13% 29% 28% Continental Europe 9% 2% 2 1% 5% UK & ROI 15% 5% 2 20% 9% APAC & EEME 20% 2% 5 22% 25% Group 12% 4% 3% 19% 14% 2) PF 55p ee.
Slide 8: High EBITDA growth of 24% driven by North America and APAC
Hi EBITDA growth of 24% driven by North America and YOY Growth % EBITDA % of sales Underlying EBITDA (Pre-IFRS 16) Constant Currency YoY % pts change 48 45% 13.1% 1.4% 6 (62)% 1.2% (2.2)% 27 14% 6.8% (0.3)% 40 26% 18.0% 0.6% (15) 21% n/a n/a 106 24% 71% 0.3% 2) PF 55p ee.
Slide 9: Financial results detail
Note: All numbers are stated on a pre-IFRS 16 basis and before exceptional costs
Slide 10: Financial results detail
Note: All numbers are stated on a pre-IFRS 16 basis and before exceptional costs
Slide 11: Results at actual FX rates
All figures shown at actual FX rates (1) JV shareholder participation weighted by sales
Slide 12: Cash flow and net debt
Note: All figures shown on a pre-IFRS 16 basis
Slide 13: Medium-term outlook
• 300 • • 250 200 • 150 • 100 • 50 0 • 2019 (A) 2023 (A) 2024 (F) 2025 (F) 2026 (F) • •
Slide 14: Adjusted to normalise the Covid period
• • • • • • • • (1) Adjusted to normalise the Covid period
Slide 15: Capital allocation priorities unchanged
Capital allocation priorities unchanged Uses of cash and balance sheet efficiency Clear priorities to generate returns * Current leverage of 2.1x Net debt: EBITDA reflects prioritisation of organic Organic growth Infill M&A growth, renewals and net gains, and infill Renewals and net gains Targeted r
Slide 16: FY 2024 planning assumptions
1. Constant rates represent average rates for FY 2023 2. FX rates as at 16 May 2024
Slide 17: KAFFETT | Helsinki Airport
7 171717 KAFFETT | Helsinki Airport
Slide 18: We are driving momentum across all areas of our business
We are driving momentum across all areas of our business In last 12 months units mobilised from the pipeline +190 new digital touchpoints new brands and concepts +4,000 colleagues +19 new clients
Slide 19: Market trends
1. McKinsey ConsumerWise Sentiment Data (UK, Germany, Spain, Italy and France), May 2024 2. ACI World Airport Economics Database 2024. Indexed 2019=100, as of February 2024 3. CAPA fleet database as at 14 May 2024
Slide 20: We are making continued progress against our Strategic Priorities
We are making continued progress against our Strategic Priorities Enhancing business S) capabilities; driving competitive advantage Pivoting to high growth markets + Accelerating LFL growth + Developing great customer propositions + Digitising our business + Increasing focus on air channel + Acceler
Slide 21: North America: Delivering rapid growth, with significant further opportunity
North America: Delivering rapid growth, with significant further opportunity Hi YOY PERFORMANCE SSP presence in top 200 airports Continuous improvement in Sates (Em) gross margin and labour 370 300 Case study: Menu optimisation + Optimised range of menu items + Supplier / ingredient rationalisation
Slide 22: APAC & EEME: Scaling up across our portfolio to deliver stronger returns
APAC & EEME: Scaling up across our portfolio to deliver stronger returns H1 YOY PERFORMANCE Sales (£m) Building scale & returns Entry level scale & returns’ 223 195 Pre-IFRS 16 EBITDA (Em) Indonesia 40 New Zealand Seeking to deliver high revenue growth, sustainable margin growth and returns EBITDA m
Slide 23: UK & ROI customer and client feedback
23 1. Reputation score calculated based on Google, TripAdvisor and Eat On The Move ratings. 23 2. SSP UK Client survey 2024
Slide 24: Continental Europe: Opportunity to make progress after short-term headwinds
Continental Europe: Opportunity to make progress after short-term headwinds H1 YOY PERFORMANCE Short-term headwinds in Opportunity to make progress Sales (em). Nordics, Germany and France in H2 and beyond 495 Nordics: extensive renewal programme * Build on strong performance in Spain den i * Embed r
Slide 25: Disciplined approach to M&A to unlock additional sustainable value
We are taking a disciplined approach to M&A to unlock additional sustainable value for shareholders Market Annualised sales Number of units Newairports entered Completion date Strategic rationale 2) FF 35p se. c.£75m c.£20m c.£20m c.£100m c.£15m 40 5 8 62 13 4 Existing 1 4 2 Nov 23 Dec 23 Feb 24 May
Slide 26: Sustainability Award
Sustainability Award Jim Norris SSP UK&I Food & Beverage Director
Slide 27: Our people and culture are enabling strong progress
Our people and culture are enabling strong progress Increase in colleague engagement colleagues n / survey globally ; participation to 80% ‘SSP
Slide 28: Our model will deliver sustainable, compounding growth and returns
Our model will deliver sustainable, compounding growth and returns Why invest? Deliverables Operating leverage and efficiency Operational capability and efficienc eeu Petey on Sustainable operating margin enhancement Capex to maintain base estate at c.4% of sales Expansionary capex into new contract
Slide 29: Summary
Summary + Strong HI growthin sales and EBITDA * Continued progress against strategic priorities, underpinning future performance + Maintaining FY24 Planning Assumptions * Medium-term financial framework unchanged; SSP well-positioned to deliver sustainable growth and returns 2) PF 55p ee.
Slide 30: Lift Bar & Grill | Vancouver Airport
Lift Bar & Grill | Vancouver Airport
Slide 31: 2024 Technical Guidance
2024 Technical Guidance On a pre-IFRS 16 basis 2024 expectation: Depreciation: c.4.0% of sales Net finance costs: c£40m Effective tax rate: Similar level to FY 2023 Minority interests: In line with profit growth in businesses with JV partners; currently estimate year-on-year increase of 15-25% Worki
Slide 32: Revenue and operating profit by currency
19% 25% 22% 8% 8% 1% 15% 4% 9% 9% 9% 1% 23% 5% Revenue EBITDA Operating 3% 12% profit 9% 10% 17% 20% 5% 30% 9% 27% Pound sterling US dollar Euro Nordic currencies Indian Rupee Egyptian Pound Canadian Dollar Other currencies
Slide 33: Disclaimer
Disclaimer Certain statements in the presentation may constitute “forward-looking statements” These statements reflect the Company's current beliefs and expectations and are based on numerous assumptions regarding the Company's present and future business strategies and the environment the Company a