Greggs expects return to pre-pandemic profits
It opened 34 shops in the first 18 weeks of 2021.
Greggs has forecasted it could get back to pre-pandemic profits this year, after the bakery giant performed well during the first few weeks.
In an update, the chain said its sales had risen compared with 2019 since clothes shops and others resumed trading on April 12.
In the eight weeks to May 8, sales dropped just 3.9%, lower compared to a 23.3% fall in the 10 weeks to March 13, the business said.
Whilst warning about “considerable uncertainty”, the board said profits could return to the levels seen in 2019 this year if COVID-19 restrictions continue to be eased as expected.
“Sales have recovered well in recent weeks as out-of-home activity levels have increased, albeit in the absence of competition from indoor seated catering operators,” Greggs told investors.
“If restrictions continue to ease in line with current plans then we now expect our overall sales performance for the year to be stronger than we had previously anticipated.”
Profits are “likely to be materially higher than its previous expectation, and could be around 2019 levels in the absence of further restrictions,” it added.
Total sales in the 18 weeks to May 8 were £352 million, up from £280 million last year, but down from £373 million in 2019.
Greggs also said it opened 34 shops in the first 18 weeks of 2021.
