Greggs posts 6% rise in sales to £422M

Greggs’s total sales rose to £422M in the first half of 2016, with shop like-for-like sales up 3.8% compared with the same period of last year. The company also posted a £25.4M profit. The results were in line with Greggs’s expected growth.

Greggs chief executive Roger Whiteside said: “We delivered good like-for-like growth by reinforcing the freshness and value of our offer, in line with changing trends in the food-on-the-go market.

Relaunch of the Greggs Rewards app in May improved membership quickly, rewarding customers for their loyalty, the company said.

‘Sales growing strongly’

“We added to our Balanced Choice range with sales growing strongly as more and more of our customers recognise the quality, range and value we offer in these healthier food choices,” said Whiteside. 

Rising sales were also helped by the opening of 68 new shops since the turn of the year, and the refurbishment of 86 stores. The total number of Greggs stores rose to 1,730 as of July 2.

Whiteside said: “Overall, we expect to deliver full-year growth in line with our previous expectations as well as further progress against our strategic plan.”

The baker said it made an “encouraging start” to the second half of the year.

Greggs did not make direct reference to Brexit in its results statement. But Whiteside did say the company was “alert to any change in consumer demand that may result from the current economic uncertainty”.

A reassuring beginning

Meanwhile, city analyst N+1 Singer Equity Research praised Greggs’s successful first half and a reassuring beginning to the final half of the year.

N+1 analyst Sahill Shan said: “There is good evidence of management delivering against the strategic plan. The outlook statement is reassuring in the context of wider consumer uncertainty post-Brexit.

 “We make no major forecast changes today and feel Greggs has sufficient self-help momentum to navigate the macro and input cost uncertainty.”