Greggs serves up better-than-expected profits as sales climb

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Food-on-the-go specialist Greggs expects higher full-year profits than expected after rebuilding sales in the first half.

Although like-for-likes in the first half of the year were down 9.2% versus 2019, the trend has turned positive since the reopening of so-called non-essential retail.

On a two-year basis, Gregg’s total sales were flat at £546.2m in the first half to July 3. Underlying pre-tax profit in the period was £55.5m, compared with £40.7m in 2019.

Delivery sales accounted for 8.5% of Greggs’ company-managed shop turnover, as consumers adopted digital purchasing options during the pandemic. Delivery is now available from 837 Greggs branches.

Greggs opened 48 new shops in the first half, and closed 11, bringing its store numbers to 2,115. The retailer expects to open approximately 100 net new branches this year.

Chief executive Roger Whiteside said: “Greggs once again showed its resilience in a challenging first half, emerging from the lockdown months in a strong position and rebuilding sales as social restrictions were progressively relaxed.

“We continue to make good progress with our strategic priorities, growing the shop estate and investing in our digital capabilities to compete in all channels and day parts of our market.

“Whilst there continue to be general uncertainties in the market, given our recent performance we now expect full-year profit to be slightly ahead of our previous expectation.”