SSP Group (SSPG) H1 2025 earnings summary

Executive summary

• Sales grew 12% year-over-year in H1 2025 to £1.7bn, with like-for-like sales up 5–6% and operating profit up 31% to £45m, with a 40bps margin improvement.

• Interim dividend of 1.4p per share proposed, up 17% year-over-year, with a payout ratio of 30–40% of net income.

• Leverage at 2.2x net debt/EBITDA, expected to fall to 1.5–2x by year-end due to strong H2 cash flows.

• Strategic focus on margin expansion, cost efficiency, and capital discipline, with major initiatives in Continental Europe and a share buyback program under consideration for year-end.

• Full-year guidance maintained; IPO of Indian JV TFS targeted for summer 2025, pending market conditions.

Financial highlights

• First half sales reached £1,661m–£1.7bn, up 12% year-over-year at constant FX; underlying EBITDA rose 13% to £114m; operating profit up 31% to £45m.

• EPS was a loss of (0.4)p per share, improved from (1.0)p last year; net debt at period end was £764m.

• Gross margin improved by 80bps to 72.9%, aided by easing food inflation and higher air sales mix.

• Free cash outflow reduced to £161m from £240m, reflecting seasonality and lower capital spend.

• Interim dividend of 1.4p per share, up 0.6p year-over-year.

Outlook and guidance

• Full-year revenue guidance: £3.7–3.8bn; operating profit: £230–260m; EPS: 11.5–13.5p at constant FX.

• Like-for-like sales growth expected at 4–5% for the full year; group LFL up 5% in first six weeks of H2.

• Leverage expected to fall towards 1.5–2.0x by year-end; capex to reduce to <£230m in FY25 and <£200m in FY26.

• Cautious outlook due to macroeconomic and geopolitical uncertainty, with confidence in cost efficiency and margin initiatives.

• IPO of Indian business (TFS) targeted for summer 2025, subject to market conditions.