Greggs full year profits to exceed expectations
Greggs has said it expects its full year profits to be ahead of expectations after like-for-like sales rose by 5.4% in the 11 weeks to 13 September.
In an interim management statement, the bakery chain said the increase meant that like-for-like sales in the year to date have now risen by 3.9%. Total sales in the 11 week period increased by 4% despite the company’s accelerated closure programme for poorly performing shops. In the year to date total sales have risen by 3.5%.
The company said sales have been boosted by a new sandwich range and upgrades to its coffee blend and core sweet lines.
Greggs chief executive Roger Whiteside added: “This strong performance reflects a positive response from customers to new product initiatives, improved service, better value and our investment in shop refurbishments alongside more favourable trading conditions.
“Whilst we face tougher comparatives in the final quarter the combination of strong sales performance, lower costs and our outlook for the remainder of the year means that we now anticipate full year profits to be materially ahead of our previous expectation.”
During the 11 week period, Greggs opened 32 shops, closed 43 and completed 153 refits. The company now operates a total of 1,660 shops including 42 franchised operations. It expects shop numbers for the year as a whole to be very slightly down.
Looking ahead Whiteside said: “Our sales-driving initiatives have been delivered in more favourable trading conditions than we had expected with no adverse weather impacts so far this year. We expect to continue rolling out new initiatives, in line with our strategy, in the months ahead.
“Whilst we face tougher comparatives in the final quarter the combination of strong sales performance, lower costs and our outlook for the remainder of the year means that we now anticipate full year profits to be materially ahead of our previous expectation.”
