SSP, known for its cafés, bars, and restaurants located in airports and train stations across Europe, experienced lower-than-expected customer traffic over the past year, largely due to the Paris Olympics deterring travelers.

In the 12 months ending September, the company’s European business saw a 5 percent increase in sales, mainly attributed to the opening of new locations.

While SSP reported robust performance at its venues in Spain and other Mediterranean tourist destinations, it acknowledged that sales figures in France and Germany fell short of anticipated levels.

Similar to sentiments shared by airlines and other hospitality providers in recent times, SSP indicated that trading conditions in France were adversely affected by the Paris Olympics during the summer months. The industry had expected a decline due to travelers avoiding the event, but the impact was more significant than anticipated.

In July, Air France-KLM, which operates national airlines for France and the Netherlands, estimated losses of up to €180 million due to a noticeable decline in international travelers opting to avoid Paris, and many locals choosing to postpone trips until after the Games.

For SSP, a reduction in passenger numbers on planes and trains meant fewer potential customers at their locations. Additionally, heightened security measures during the Olympics left travelers with less time to dine and enjoy refreshments.

The company attributed its disappointing performance in Germany to weak sales at its service stations along motorways, which are currently being sold off.

SSP was originally part of Compass Group, the largest contract caterer globally, before it was sold to EQT Partners, a Scandinavian private equity firm, in 2006. The company later went public in 2014 through a £1 billion listing on the London Stock Exchange.

Currently, SSP operates in 36 countries, managing around 550 brands including its own labels like Upper Crust, Caffè Ritazza, and Camden Food Co, as well as franchise partnerships with well-known names such as Burger King, Yo! Sushi, Pret A Manger, and Starbucks. The company employs approximately 43,000 people.

Europe was the only region that hindered SSP’s performance in the recently concluded financial year, during which the company achieved an overall sales growth of 12 percent, totaling £3.4 billion. Adjusting for the strengthening pound, this figure rose by 15 percent, reaching £3.5 billion.

SSP is experiencing rapid expansion in North America and Asia, where sales surged by 16 percent and 24 percent, respectively, last year. The UK sector, while more established, also reported a 12 percent increase in sales, largely fueled by improved like-for-like trading as air travel made a recovery post-pandemic, coupled with fewer train strikes.

Chief Executive Patrick Coveney noted, “There has been good trading momentum across our business throughout our fourth quarter. Our North America, Asia Pacific, and Europe & Middle East regions have continued to perform either ahead of or in line with our expectations, and we have seen significant improvements in our UK operations, although we are addressing challenges in certain areas of continental Europe.”

Despite the difficulties encountered in Europe, SSP projects a full-year operating profit between £200 million and £210 million, which would represent an increase of approximately one third compared to last year and aligns with expectations set by market analysts.

On Thursday afternoon, SSP shares traded at 156½ pence, reflecting a slight decrease of 0.5 percent, maintaining a position only marginally above the lows experienced during the pandemic when travel was heavily restricted.