Greggs reveals a positive outlook, with total sales up 3.1% so far this year

Newcastle bakery retailers Greggs PLC released its half yearly report today, stating that sales are up 3.1% in the first 26 weeks of this year, stating that they are expecting an “improved financial result for the year.”

In a statement, Greggs announced that they have seen a steady increase in sales despite store closures outweighing store openings, although year-on-year performance has benefitted from comparison with a period of weak trading in 2013.

They also reported that like-for-like sales in their own shops grew by 3.2% over the same period.

Greggs also reported 131 shop refurbishments, in line with their plan to refit around 200 shops during 2014.

26 new shops were opened, countered by the closing of 36 shops, giving a total of 1,661 shops trading at June 28.

The disposal of a number of “surplus freehold properties” in the year to date realised property profits of £1.4million (2013: £0.2 million).

Earlier this year, the company spent £8.1 million on closing nine loss-making shops and restructuring the “Greggs Moment” coffee shops, as well as changes to its supply chain.

The firm stated that their contined growth stems from the growing importance of breakfast among consumerswith its £2 breakfast deal, and new product lines, including pizza and ‘heat to eat’ sandwiches, all performing well.

The statement gave a positive outlook despite this gloomy start to the year, predicting that “with good cost control and the benefit of property disposal profits” the firm expects to show operating profits of around £16-17 million (2013: £11.5 million) at their interim results on 30 July 2014