Greggs boosted by Easter treats

11th May 2011 08:00

Solid Easter trading and favourable weather helped bakery chain Greggs report an 4.8% increase in total sales in the first 18 weeks of the year.The tradition of eating hot cross buns on Good Friday was warmly embraced this year. Greggs said over 3m of them were sold, up 23% from the same time last year.Chairman Derek Netherton said he was pleased with the company's growth despite what remains a challenging trading environment. Overall the company expects the year to be one of continued progress. Same store sales rose by 0.8% in the 18 weeks to 7 May 2011. Greggs said it expects marginally positive same-store sales for 2011 and further sales growth as it opens new stores. Its programme of adding around 80 net new shops during 2011 is on track, it said.However Greggs warned that it continues to face significant and rising input cost pressures as a result of global commodity price increases, in particular fuel, energy and key ingredients. "We expect to mitigate these challenges through our on-going initiatives to make the business even more efficient, thereby minimising the need to pass on inflationary cost increases to our customers," Greggs said.CJ