British baker and fast food chain Greggs said that it traded well in its latest quarter, showing its resilience against the backdrop of a worsening cost of living squeeze.
Confidence levels among Britain's consumers sank to a record low last month as they struggle with the accelerating cost of living, even before the government's mini-budget sowed turmoil in the mortgage market, leading to warnings of a sharp drop in house prices.
Wages are failing to keep pace with inflation that was 9.9% in August.
However, Greggs, known for its sausage rolls, steak bakes, vegan snacks and sweet treats, said its total sales rose 14.6% over the 13 weeks to 1 October year-on-year, with like-for-like sales in company managed shops up 9.7%.
"Greggs continues to trade well in an environment where cost pressures are significant," it said.
It kept its guidance for full-year cost inflation of about 9% and said it expected the full year outcome to be in line with its previous expectations.
Greggs said in March it did not expect material profit growth in the current year on the £145.6 million (€166.2 million) made in 2021 due to the higher cost of raw materials, energy and staff.
The high street bakery firm reported a 27.4% increase in like-for-like sales in the first quarter of its financial year, although this compares to a corresponding period last year that was affected by COVID-19 lockdowns.
This week, Greggs introduced a further round of price rises, including for the sausage rolls it is famous for, as it battles rising costs, its boss said on Tuesday.
"We have put a small number of rises across products as of yesterday, we've worked hard to mitigate that," chief executive Roisin Currie told Reuters.
She said a Greggs sausage roll was £1.05 pound (€1.20) at the start of the year, moved to £1.10 in May and is now £1.15.
Price rises on other products were 5 pence to 10 pence.
Currie said she hoped it would be the final round of price increases this year but could not guarantee it.
News by Reuters, edited by ESM. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.