Greggs lifts profit forecast as sales jump
Bakery chain Greggs has served up another profits upgrade after favourable weather and new ranges helped boost its sales.
The group, which has around 1,660 outlets, reported a 5.2 per cent rise in like-for-like sales for the 24 weeks to 13 December as it built on the strong performance seen over the summer.
Profits for the year to 3 January are now set to beat City expectations of about £53.6 million. That compares with £41.3m a year ago and the second such earnings upgrade in three months saw shares in the company end the day up 36p, or 5.5 per cent, at 692.5p.
Chief executive Roger Whiteside, who took charge of Greggs last year, said: “Trading conditions have remained helpful but there is no doubt that customers are also responding to improvements in our product and service offer and to the investment we are making in the shop environment.”
Shore Capital analyst Clive Black said: “Greggs’ management is steering to a beat of prevailing market expectations, which we welcome.”
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