1st Oct 2024 09:27
(Alliance News) - Greggs PLC on Tuesday reported a double-digit sales increase in the third quarter, although the pace of growth slowed from the pace set in the first half.
The Newcastle, England-based bakery chain said total sales rose 11% for the 13 weeks to September 28, and 13% year-to-date. This compares to an increase of 14% reported in the 26 weeks to July 1.
Company-managed shop like-for-like sales rose 5.0% for the quarter and 6.5% year-to-date, slowing from 7.4% at the half-year stage.
Nonetheless, the hot snacks seller left expectations for the full-year unchanged.
"Whilst acknowledging ongoing economic uncertainty, the board expects the full year outcome to be in line with its previous expectations. The board remains confident in the long-term growth opportunity for Greggs, and we are investing to support that growth," it said in a statement.
Supporting this confidence, Greggs now expects the overall level of cost inflation for 2024 to be towards the lower end of the 4% to 5% range previously guided.
Growth was supported by menu development and further progress in extended trading hours and new digital channels, the firm said.
Greggs said 86 net new shops opened year-to-date, and it is on track to open between 140 and 160 net new shops in 2024, including around 50 relocations.
Full year guidance for capital expenditure in 2024 remains in the range of GBP250 to GBP280 million, with the timing of the land purchase at Kettering being the primary uncertainty.
Shares in Greggs were down 3.0% to 3,030.00 pence each in London on Tuesday morning.
By Jeremy Cutler, Alliance News reporter
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