28th Jun 2021 10:19
(Alliance News) - Greggs PLC on Monday said said sales have been stronger than anticipated since lockdown restrictions were eased in the UK.
The high street baker and retailer said it had expected to see increased competition as cafes and restaurants were allowed to compete "more effectively" with the firm's largely take-out offer.
"In recent weeks the impact of pent-up demand for retail has reduced but, nonetheless, like-for-like sales growth in company-managed shops has remained in positive territory ranging between 1% and 3% when measured against the same period in 2019," Greggs said.
It added: "This level of sustained sales recovery is stronger than we had anticipated and, if it were to continue, would have a materially positive impact on the expected financial result for the year."
The bakery chain - known for its sausage rolls, both meat and vegan - first indicated in May that it could return to pre-pandemic profit levels later this year.
But bosses now seem convinced it could happen sooner than first thought.
In the eight weeks to May 8, sales were down just 3.9% on the same period in 2019, compared with a 23% two-year fall in the 10 weeks to March 13.
Total sales in the 18 weeks to May 8 were GBP352 million, up from GBP280 million last year as the pandemic weighed in, but down from GBP373 million in 2019.
Retail analyst Clive Black of Shore Capital said: "Greggs has bounced back exceptionally well, it should be said, and has showed itself to be very much a loved brand by shoppers."
Shares in Greggs were 1.1% higher in London on Monday morning at 2,589.00 pence each.
By Paul McGowan; [email protected]
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