British baker and fast food chain Greggs has maintained its full-year outlook, saying its value offer was attractive in a market where consumer incomes were under pressure.
The group, known for its sausage rolls, steak bakes, vegan snacks and sweet treats, reported flat profit of £55.8 million (€66.6 million) for the 26 weeks to July 2, reflecting the re-introduction of business rates, an increase in VAT sales tax and higher levels of cost inflation.
'Making Good Progress'
"Clearly there are considerable uncertainties in the economy as a whole, but we continue to trade in line with our plan and are making good progress against our strategic objective to become a larger, multi-channel business," said Greggs chief executive Roisin Currie.
Total sales rose 27.1% to £694.5 million (€828.4 million), with like-for-like sales up 22.4% - figures flattered by comparison with COVID-19 restricted trading conditions in the same period of 2021.
In the first four weeks of its second half like-for-like sales were 13.1% above the equivalent period of 2021.
Profit Performance
Greggs had said in March that it did not expect material profit growth in the current year on the £145.6 million made in 2021 due to the surging cost of raw materials, energy and staff.
Confidence levels among Britain's consumers are at record lows as wages fail to keep pace with inflation that hit a 40-year high of 9.4% in June and is heading for double digits.
Pressure on households is expected to increase this autumn as higher energy bills are accompanied by further price rises in essential items, such as clothing and food.
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