Greggs has announced its interim profits for the 26 weeks ending July 1st. They show total sales up 7.3% to £453 mill, and company-managed shop like-for-like sales up 3.4%. Despite input inflation resulting in margin pressure (6.1% vs 6.4% in 2016), operating profit (excluding property gains and exceptional charges) grew 1.8% to £27.6 mill.
The continuing growth of the company’s like-for-like sales is attributed to its extended balanced choice range with the launch of new salads and drinks, increased popularity of hot sandwiches, strong demand for coffee and breakfast, and growth in traditional products such as fresh-baked savouries.
Greggs opened 61 new shops in the first half of 2017 including its 24 franchised units, and closed 19 shops, giving a total of 1,806 shops trading at July 1, 2017. This year also saw the opening of the brand’s first 'Drive-Thru' shop at Irlam, Greater Manchester, the success of which is likely to see more such outlets in the future.
It has also continued expansion within south-west of England and in Northern Ireland whilst adapting its formats to suit locations such as garage forecourts.
"The business has traded in line with our plans during the first half of the year. We have made good progress with our strategic plans and remain confident of future prospects although we remain alert to short-term pressures on consumers' disposable income. Over the year as a whole we expect to deliver results in line with our previous expectations as well as further progress against our strategic plan," said Roger Whiteside, chief executive of Greggs PLC.
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