Greggs warns over profits as weather hits sales

National baker Greggs has warned annual earnings could fall after cost demands were compounded by the recent heatwave.

The firm says full-year operating profit could be “modestly below” 2024 figures.

The chain issued the caution after June’s hot weather dented customers’ appetites, which it says increased clamour for cold drinks but reduced overall footfall.

Bosses said the Newcastle-headquartered pasty and sausage roll maker’s progress was further affected by “phasing of store refurbishments and cost recovery initiatives”.

The warning came in a trading update for the six months to June 28, which revealed half-year sales were up 6.9 per cent to £1.027 billion.

It added like-for-like sales growth in company-managed stores stood at 2.6 per cent, with “good progress” in May helping offset “slower growth” in June as “high temperatures impacted consumer purchasing patterns”.

Roisin Currie, chief executive, said: “The board expects first-half operating profit to be lower than first-half results in 2024, reflecting the stronger comparative trading performance in 2024 and the phasing of refurbishments and cost recovery initiatives across the current year.   

“While acknowledging that comparative like-for-like sales are less demanding in the second half of the year, in light of the current trading conditions, the board now anticipates full-year operating profit could be modestly below that achieved in 2024.”

The update came just weeks after Greggs hailed its progress in a “challenging” market following a viral social media campaign that helped catapult sales higher.

At the time, officials said it had benefited from clamour for new lines, including a mac and cheese offer that trended across social media platform TikTok.

They added the firm, which racked up record £2 billion sales in its last annual results, had also gained from demand for recently-introduced pizza boxes and peach iced tea and mint lemonade over-ice drinks.

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