Profit slips at Greggs

6th Aug 2013 07:43

Bakery chain Greggs reported a fall in profits and sales as it pledged to reshape the business over the next two to three years.The Leeds-based chain said like-for-like sales (LFL), which exclude new outlets, fell 2.9% in the first half of 2013, as cold weather at the start of the year put off potential customers. It said trading in recent weeks has been hit by the heatwave.Total group sales climbed 3.4% to £362m for the 26 weeks ended June 29th from £350m a year earlier. Pre-tax profit fell £4.6m to £11.4m and it warned full year profits would now be £3.0m lower than previously expected.In April Greggs issued a surprise profit warning, blaming the chilly weather for a steeper than expected drop in sales. Chief Executive Roger Whiteside, former Punch Taverns boss who took up the reins in February said: "We will spend the next two to three years reshaping the business as we build the platform for long term sustainable profit growth for the benefit of shareholders, employees and the wider community."The high street baker said it would focus on improving existing shops rather than opening new stores with plans to refit up to 240 shops in 2013, resulting in one-off charges of up to £8m in the second half of the year.Net cash generated from operating activities rose to £24.7m from £14.2m in 2012.Greggs has maintained its dividend payment at 6.0p.CJ