British baker and fast food retailer Greggs said its expectations for the full year were unchanged as it reported underlying sales growth of 7.4% for the first 19 weeks of 2024.
The Newcastle-based company, famous for its sausage rolls, steak bakes and vegan alternatives, said it made progress across all its sales channels.
It said delivery sales, evening trade and increased usage of the Greggs App all supported volume growth, or the number of items sold.
Total sales rose to £693 million (€806.7 million), compared to £609 million (€708.9 million) in the same period last year.
'A Good Start'
'We have made a good start to the year with continued like-for-like growth in a challenging market, reflecting the strength of our strategic plan,' the company said in a statement. 'There has been no change to the outlook for cost inflation, which we expect to be in the range of 4-5% on a LFL basis.
'Whilst early in the financial year, the Board’s expectations for the full year outcome are unchanged.'
The group opened 64 new stores in the period (27 net new openings), taking its store estate to some 2,500 locations. It added that it is confident of opening between 140 to 160 net new openings in the full year.
Analyst Comment
Commenting on Greggs' performance, Charlie Huggins of Wealth Club said, "Like-for-like sales are growing nicely and with no change to cost inflation expectations, the group has reiterated its full year guidance.
"Greggs' brand continues to resonate strongly with the UK consumer, despite the weak economic backdrop. The roll out of new stores, extended opening hours and new menu items like pizza and pasta should all help to sustain this momentum.
"That said, Greggs' shares are not as cheap as its pasties. This means it will need to maintain strong progress in order to keep investors happy."
Additional reporting by ESM
