British high-street baker Greggs has stuck to forecasts for higher full-year profit after posting a 14% rise in the first-half of its financial year, as its value food offering of breakfast deals, vegan bakes and more continues to grow in popularity.
For the 26 weeks to July 1, Greggs reported underlying pretax profit excluding exceptional items of £63.7 million (€74.4 million), on underlying sales which were 16% higher.
Greggs said that performance, plus the expected moderation in cost inflation, meant its forecasts for the year were unchanged.
'Trading Momentum'
'The strong trading momentum of the first half has continued into the second half of the year, with good sales reflecting the exceptional value that Greggs offers to customers who need food and drink on-the-go,' the group said in its statement.
Analysts are expecting the bakery and fast-food chain to report pretax profit of about £163 million (€190.3 million) for 2023, Refinitiv data shows, up 10% on the previous year.
The company also lifted its interim dividend by 7% to 16 pence per share.
'Strategic Growth Plan'
"Greggs strong performance continued in the first half of 2023 as we deliver on our strategic growth plan. With consumers remaining under pressure, we continue to offer exceptional value, which is reflected in our performance and
growing market share," commented Roisin Currie, chief executive.
"Our ambitious plans for growth are on track and our amazing teams are committed to realising the opportunity to become a significantly larger, multichannel business."
Currie added that during the period, Greggs opened new stores, extended its trading hours into the evening at selected outlets, and increase customer participation in its Greggs App.
Additional reporting by ESM
