Greggs 'still well placed' despite weather profit hit

High street baker Greggs says new products and partnerships leave it primed to bite further into the market despite unstable weather dampening profits on ten-figure sales.

The national operator smashed the £1 billion revenue barrier in the half-year to June 28.

However, the Newcastle-headquartered pasty and sausage roll maker saw annual comparative operating profit fall more than £5 million to £70.4 million and pre-tax earnings drop more than £10 million to £63.5 million as “challenging market footfall and volatile weather” knocked progress.

The results come after June’s heatwave reduced footfall and January’s heavy snow kept buyers indoors, with the baker – which previously warned prices would rise to mitigate higher employment costs – also wrestling with £3 million additional costs relating to a raft of operational areas including the creation of production and distribution sites in Derby and Kettering, in Northamptonshire.

But officials at the firm, which began life selling eggs and yeast to North East families from a bicycle nearly 100 years ago, say they remain confident of growth, citing the potential of 150 net store openings in 2025, alongside a refreshed menu, a new supermarket deal and continued delivery service demand.

Praising its persistence following a “challenging start to 2025”, chief executive Roisin Currie said the business is well placed to reverse its profit dip, citing the impact of new lines including ginger and turmeric health shots, Greek-style fat-free yoghurt and new Korean-style BBQ chicken flatbread.

She also revealed the firm will extend its ‘bake at home’ range with supermarket Tesco in September – building on a longstanding partnership with frozen food retailer Iceland – adding it continues to enjoy good sales through agreements with delivery services Just Eat and Uber Eats.

She said: “We remain clear on the opportunities that lie ahead.

“Through our disciplined estate expansion and focus on innovation, Greggs is evolving its offer further and making the brand more convenient for a wider range of customers.”

She revealed work is “progressing well” on its Derby-based frozen product making and distribution hub, with machinery now being installed ahead of its planned opening in the first half of 2026.

Its Kettering-based national distribution centre is earmarked to open in mid-2027.

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