The bakery chain saw like-for-like company-managed shop sales grow 7.4% in the first half of the year as the company said it remained on track to post full-year profits in line with expectations
Greggs, the beloved high street bakery chain, has reported a tasty spike in half-year sales and profits, helped by its pizza box deals and cool iced summer beverages.
Greggs has seen a 16.3% increase in underlying pre-tax profits, hitting £74.1million for the first six months up to June 29, as they watched like-for-like company-managed shop sales leap by 7.4%. It seems Greggs also said the results were boosted by a “better recovery” of cost inflation compared to last year’s figures.
The revenues raked in by the company rose to£960.6million over the half-year period. This surge in sales has been driven by new items on the Greggs menu, including refreshing iced drinks such as its mango and strawberry cooler and the strawberries and cream refresher now sold in 500 shops, with plans to expand to 200 more before the year is out.
Greggs recently introduced four-slice sharing box alos helped increase sales. Greggs plans to have “significantly” more than 3,000 shops open across the UK in the coming years. Already boasting a net growth of 81 new shops after 99 openings and 18 closures, bringing their current count to 2,524.
The expansion is in full swing with Greggs planning to open a 160 new shops this year. And to make sure they’ve got enough to feed their growth, the firm is set on expanding and revamping warehouses in Birmingham and Amesbury in Wiltshire, aiming to have them ready in the second half of this year to support an additional 300 shops.
Roisin Currie, Chief Executive of Greggs, announced: “Greggs has made good progress in the first half of the year, further broadening our range of on-the-go food and drink whilst making it more accessible to more customers. Our cost outlook for 2024 remains unchanged and we continue to trade in line with our plan.”
“The board remains confident in the long-term growth strategy, and we are investing to support that growth.” On inflation, the firm noted it had seen costs increase by 4% in the first half of 2024, projecting a similar trend with an expectation of a 4% to 5% rise over the entire year.
Despite potential market fluctuations, Ms Currie added: “Whilst uncertainties remain, the board’s expectations for the full-year outcome are unchanged.”
