Finance
SSP in cost-cutting drive amid global uncertainty
Published by Global Banking & Finance Review®
Posted on May 20, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 20, 2025
2 min readLast updated: January 23, 2026
SSP Group starts a cost-cutting drive to enhance profitability in Europe amid global uncertainties affecting travel markets.
(Reuters) - Britain's SSP Group on Tuesday launched a cost-cutting drive and a turnaround plan to revive profitability of its food outlet operations in continental Europe, its largest market.
As part of plans to boost margins and returns in fiscal year 2026, the owner of Upper Crust, is reviewing its Italian operations and potentially exiting loss-making contracts, it added.
The company did not say how much it plans to cut costs, but outlined plans for capital spending of less than 230 million pounds this year and 200 million pounds in fiscal 2026.
Elsewhere, looming uncertainties from U.S. tariffs have hit global companies across sectors, and has led to a slump in air travel demand, which is denting growth prospects for companies such as SSP, which operates food outlets at airports.
"Recent geopolitical events have led to a heightened level of uncertainty across some of our travel markets, in particular in North America," the company said in a statement.
SSP's North America like-for-like sales dropped 2% for the six months ended March 31.
Panmure Liberum analysts said the cost reduction programme, capital expenditure cuts, and strong cash generation may enable a share buyback in the second half this year.
Shares in the firm, which runs Starbucks in London's Heathrow airport, rose 2.3% at 171 pence.
It pushed back plans for its initial public offering in India for its Travel Food Services business to the summer of 2025, from an earlier target in the spring.
SSP's core earnings for the half-year rose 8% to 114 million pounds ($152.40 million). It kept its 2025 guidance unchanged.
($1 = 0.7481 pounds)
(Reporting by Anandita Mehrotra in Bengaluru; Editing by Sherry Jacob-Phillips and David Evans)
The article discusses SSP Group's cost-cutting drive to improve profitability amid global uncertainties.
SSP plans to cut costs, review Italian operations, and potentially exit loss-making contracts.
Global uncertainties, including U.S. tariffs, are impacting travel demand and SSP's growth prospects.
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