SSP Group plc (LON:SSPG) saw like-for-like (LFL) sales growth slow in July-September due to the grounding of Boeing Max 737 aircraft and political events.
Sales numbers were also impacted by the suspensions of Jet Airways in India, the Hong Kong protests and weaker passenger traffic in China and Europe, offset by positive performances in Egypt and the Middle East.
READ: SSP Group sees revenue rise by 10% for third quarter
The company, which operates food and drink units such as for Burger King and Starbucks Corporation (NASDAQ:SBUX) in airports and train stations worldwide, recorded 1.8% LFL sales growth in the fourth quarter of its financial year, which runs to the end of September, having achieved 2.0% growth in the third.
LFL sales growth expectations for the full year were set at “just below” 2%, as opposed to “around” 2%, as mentioned in the last trading update.
The company said it expects tough trading conditions will continue and could be exacerbated by “ongoing economic uncertainty and the expectation of airline capacity cuts”.
The company made its first entry in Brazil this year, pushing net contract gains up 5.5%, slightly above previous guidance.
Net contract gains or losses indicate the net year-on-year revenue impact from new outlets opened and existing units closed in the past 12 months.
Total group revenue in the year to end-September 2019 is expected to be up by about 7.8% year-on-year on a constant currency basis and up 10% or so on an actual exchange rates basis.
Shares were down 3.60% to 643.98p in early trading on Thursday.