Greggs makes good progress following growth in coffee, breakfast and salad items
Greggs has reported making “good progress” in the first half of its financial year with like-for-like store sales rising by 3.4%.
In the six months to 1 July, total sales climbed by 7.3% to £453 million.
While operating profit excluding property gains and exceptional items was up 1.8% to £27.6 million, pre-tax profit including property profits and exceptional charges was £19.4 million.
The company said the like-for-like sales growth was helped by its continuing focus on coffee and breakfast items as well as its Balanced Choice range of salads and drinks.
Capital expenditure during the first half was £36.4 million as Greggs invested in its supply chain, new shops and estate refurbishment.
The company opened 61 new shops, including 24 franchised units, and closed 19 to give a total of 1,806 stores at the end of the period. This included the opening of its first ‘Drive-Thru’ shop at Irlam in Greater Manchester. It also continued to expand the estate in the south-west of England and in Northern Ireland whilst adapting its formats to suit locations such as garage forecourts.
Roger Whiteside, Greggs chief executive, said: “The business has traded in line with our plans during the first half of the year. We have made good progress with our strategic plans and remain confident of future prospects although we remain alert to short-term pressures on consumers’ disposable income. Over the year as a whole we expect to deliver results in line with our previous expectations as well as further progress against our strategic plan.”
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