|
Greggs PLC on Wednesday maintained guidance, despite challenging market conditions, with improved trading in August and September after the ‘unusually’ warm weather in July. The Newcastle-upon-Tyne based bakery chain said total sales rose 6.1% for the 13 weeks to September 27, its third quarter, and by 6.7% year-to-date. Company-managed shop like-for-like sales increased 1.5% for the 13 weeks, and 2.2% year-to-date. Trading picked up in August and September following a ‘heat-affected’ July, Greggs explained. ‘While unusually high temperatures persisted throughout July, which held back performance during the month, trading improved in August and September in more stable conditions,’ the firm said in a statement. The company said it continues to ‘make progress despite challenging market conditions.’ In response, shares climbed 5.9% to 1,698.89 pence each in London on Wednesday morning. In July, Greggs issued a profit warning, blaming that setback on hot weather, weak high street footfall, and the phasing of increased costs. The company said it has opened 130 new shops openings in the year-to-date, which with 73 closures, results in 57 net new shops being opened. It expects around 120 net shop openings in 2025 with a strong pipeline for the fourth quarter and into 2026. Greggs said the testing of automation capabilities at its new frozen product manufacturing and logistics facility in Derby is proceeding in line with plan, with the site on track to open in 2026. The construction phase for the new chilled and ambient National Distribution Centre in Kettering is nearing completion, as planned, it added. Greggs said the Derby and Kettering plants will support the next phase of its growth. ‘The board’s expectation for the full year outcome is unchanged and we remain clear on the strategic opportunities that lie ahead,’ the firm added. Operational costs have been well managed and the outlook for cost inflation in 2025 is marginally improved, Greggs said. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
