Greggs sees higher H1 profits after good trading

1st Jul 2014 07:38

Bakery chain Greggs served up higher sales in the first half as new products attracted customers, helping it to forecast better interim profits than last year.Innovations such as revamped pizzas and pasties and new-style cakes drove a 3.2% rise in like-for-like sales in the 26 weeks to June 28th, against a 2.9% fall last year. Total sales in the period rose 3.1%.Greggs said a better performance after a weak equivalent period last year contributed to the rises.The group refurbished 131 shops in the first half, of the 200 it plans to refit in 2014.It also opened 26 shops and closed 36 stores, giving a total of 1,661 outlets trading at June 28th, broadly flat for the year as a whole.Greggs said in a trading update that it expected half-year operating profits of about £16m-£17m against £11.5m a year ago.Cost-cutting and the sale of a number of surplus freehold properties also helped, with property disposals producing profits of £1.4m against £200,000 last time.Greggs warned that matching a better performance in the second half last year would be tougher, but added: "The risk of further input cost inflation appears to be reducing. Overall, we expect to deliver an improved financial result for the year and further progress against our strategic plan."PW