Greggs first half performance impacted by weather
Greggs has posted a drop in first half profit after sales growth was hit by warm weather in June.
In the six months to 28 June, pre-tax profit declined to £63.5 million from £74.1 million a year earlier while operating profit fell to £70.4 million from a previous £75.8 million.
Meanwhile, total sales rose by 7% to £1.03 billion with like-for-like sales in company-managed shops growing by 2.6%.
Greggs said its performance reflected challenging market footfall and the phasing of cost headwinds, including £3 million of additional costs relating to manufacturing, logistics and technology capacity.
Subscribe to TRBTrade was also affected by the weather including heavy snow and strong winds in January and unusually hot weather in June which impacted like-for-like sales.
During the period, Greggs opened 87 new shops, including 18 franchised units and 27 relocated shops. After 56 closures including relocations, the retailer had a total of 2,649 sites trading at 28 June.
In September, Greggs will be extending the availability of its frozen ‘Bake at Home’ range through a new relationship with Tesco as it looks to build on the success of its ongoing partnership with Iceland Foods.
Roisin Currie, chief executive of Greggs, said: “After a challenging start to 2025 we remain clear on the strategic opportunities that lie ahead.
“Through our disciplined estate expansion and focus on innovation, Greggs is evolving its offer further and making the brand more convenient for a wider range of customers.
“The outlook for cost inflation is unchanged and we are making great progress in building the supply chain infrastructure that will support the next phase of growth.
“The board’s expectations for the full year are consistent with the guidance provided in our last trading update on 2 July.”
