Greggs posts 15th consecutive quarter of rising sales

By Matt Atherton contact

- Last updated on GMT

Greggs sales increased 7.3% in the 26 weeks to July 1
Greggs sales increased 7.3% in the 26 weeks to July 1
High street baker Greggs recorded its 15th consecutive quarter of like-for-like sales growth, after reporting a 7.3% sales boost to £453M.

Greggs also reported an operating profit rise of 1.8% to £27.6M, excluding property gains and exceptional charges. Its ‘Balanced Choice’ and breakfast ranges boosted profits, reported in its half-year trading update today (August 1).

Company-managed like-for-like sales were up 3.4%, after opening 61 new stores across the country. Greggs shareholders’ dividend per share increased 8.4% to 10.3p, it said.

‘Good progress’

Greggs chief executive Roger Whiteside 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.”

Like-for-like sales growth increased after growth in hot food choices, and traditional savoury products – including sausage rolls. The Balanced Choice range expanded to include new salads and drinks.

Net 42 store openings

Greggs closed 19 stores across the 26 weeks to July 1, resulting in a net 42 store openings. It had 1,806 stores trading, as of the end of the quarter. The baker expected to open a further 39 stores over the remainder of its financial year.

But, Greggs paid out £8.3M in costs over the half related to restructuring, which included plans to cut 220 jobs in Wales and Scotland, according to unions. The baker confirmed it had finished its consultation process​ in May, and was looking to start the restructuring.

Meanwhile, in June, think-tank IGD revealed that the food-to-go market was a multi-million pound opportunity​ for manufacturers, after growing millennial demand.

Greggs half-year trading update – at a glance

  • Sales up 7%
  • Company-managed shop like-for-like sales up 3.4%
  • Operating profit, excluding property gains and exceptional charge up 1.8%

Related news

Show more

Related products

show more

Emerging Risks: Preparedness in Food Manufacturing

Emerging Risks: Preparedness in Food Manufacturing

Risk and Resilience | 04-Sep-2017 | Technical / White Paper

This paper argues the need for organisations and value chains in the Food Manufacturing Sector to reconsider how they view risk management and resilience...

7 steps to defend your food business against risk

7 steps to defend your food business against risk

Authenticate IS | 22-May-2017 | Technical / White Paper

The next food industry scare could be just around the corner, is your business ready to defend itself?Given the complex, global nature of today’s supply...

your free 2017 calendar to start planning…

your free 2017 calendar to start planning…

William Reed Business Media | 14-Dec-2016 | Infographic

Food Manufacture Group delivers a highly qualified and established audience within the UK food and beverage manufacturing industry.   Our portfolio - including...

Related suppliers

Follow us

Featured Events

View more

Products

View more