2nd Jul 2025 08:37
(Alliance News) - Greggs PLC shares fell on Wednesday after saying operating profit could be lower than last year, as June's hot weather reduced demand for baked goods.
Shares in Greggs sank 12% to 1,734.00 pence in London on Wednesday morning. They hit a low of 1,682.00p.
The Newcastle upon Tyne, England-based pastry provider said despite "good progress" in May, footfall fell in June amid very high temperatures, though demand for cold drinks increased.
Greggs said total sales were up 6.9% in the 26 weeks to June 28, the end of its first half, to GBP1.03 billion, with like-for-like sales growth of 2.6%.
The baker forecasts operating profit in the first half to be lower than last year, due to last year's stronger comparative trading performance and the phasing of refurbishments and cost recovery initiatives across the current year.
For the full year, Greggs said its cost inflation outlook is unchanged as it expects cost mitigation measures to improve performance in the second half.
"Whilst acknowledging that comparative [like-for-like] sales are less demanding in the second half of the year, in light of the current trading conditions the board now anticipates that the full year operating profit could be modestly below that achieved in 2024," Greggs said.
The food retailer opened 87 new shops in the first half of the year and closed 56, leaving a total of 2,649 shops trading at the end of June.
It said it remains confident of reaching between 140 and 150 net openings for the full year.
Refurbishments have been weighted to the first half, with 108 refits completed and 50 more planned for the remainder of the year, Greggs noted.
By Michael Hennessey, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Greggs