Greggs likely to serve up higher profits than expected

Greggs reported that the improvement had been better than expected when it last updated in May and, ”if it were to continue, would have a materially positive impact on the expected financial result for the year”.

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: ”Since then we had expected to see increased competition as cafes and restaurants were allowed to compete more effectively with our largely take-out offer.

”In 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.

”This 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 results”.

Greggs will report its first-half performance in early August.