INTERNATIONAL. One of the world’s leading airport food & beverage operators, SSP Group, has warned COVID-19 will have reduced overall group revenue for February by between £10 million (US$12.58 million) and £12 million ($15.1 million). The company said operating profit for the month is likely to be reduced by between £4 million (US$5.03 million) and £5 million (US$6.29 million).
In a trading update, SSP said sales across the Asia Pacific region, which accounts for approximately 8% of group revenues, were -50% lower year-on-year in February. This comes as the F&B company reported footfall for the month was down -90% year-on-year in the Mainland China airports it operates in; -70% lower at Hong Kong International Airport; and between -25% and -30% lower at key airports in Singapore, Thailand and the Philippines.
SSP added that there had been some impact in Australia, as well as the major travel hubs in the Middle East and India, but that this has been less severe to date.
“Since the escalation of the virus during January, our immediate priority has been the health and safety of our colleagues, customers and partners based across China and the Asia Pacific region,” SSP said.
“We have worked closely with our teams and local authorities to implement a range of additional health & safety policies and protocols covering hygiene, travel and quarantine periods, in order to keep people fully informed and as well protected as possible against infection.”
The company added that it was taking “all the necessary action” to reduce costs by temporarily closing units and introducing reduced operating hours.
In the trading update’s outlook, SSP said: “Clearly the duration of the COVID-19 virus and its impact on global travel is uncertain at this stage, as are its consequences for our financial performance for the full year.
“We will continue to take all the necessary action as appropriate. Our strategy remains unchanged, and we continue to be well placed to benefit from the significant structural growth opportunities in our markets over the medium term and to create ongoing value for our shareholders.”
NOTE: The Moodie Davitt Report also publishes FAB, the world’s only media focused on airport (and other travel-related) food & beverage. The FAB Newsletter is published every two weeks and The FAB eZine every month.
Please send all news of food & beverage outlet openings, together with images, menus, video etc to Martin@MoodieDavittReport.com to ensure unrivalled global exposure.
The company also organises the annual Airport Food & Beverage (FAB) Conference & Awards. FAB 2020 will be held in Istanbul on 2 and 3 September. Istanbul Airport will host the event, which will be a celebration not only of the best in international airport dining but also of Turkish cuisine and culture. FAB 2020 will be supported strongly by Tum & Ictur, the concessionaire managing 34,000sq m of food & beverage space at Istanbul Airport.
