Food on the go specialist Greggs has raised the prospect of higher than anticipated profits after a strong recovery in performance.
Greggs reported that the improvement had been better than expected when it last updated in May and, âif it were to continue, would have a materially positive impact on the expected financial result for the yearâ.
Greggs previously said that it had got off to a strong start as Covid restrictions on non-essential retail were relaxed, bringing more footfall to retail locations.
The retailer said today: âSince then we had expected to see increased competition as cafes and restaurants were allowed to compete more effectively with our largely take-out offer.
âIn recent weeks the impact of pent-up demand for retail has reduced but, nonetheless, like-for-like sales growth in company-managed shops has remained in positive territory ranging between 1% and 3% when measured against the same period in 2019.
âThis level of sustained sales recovery is stronger than we had anticipated and, if it were to continue, would have a materially positive impact on the expected financial result for the year. We will provide an updated picture when we present our interim resultsâ.
Greggs will report its first-half performance in early August.
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