Greggs has posted robust first half trading figures, boosted by its shift towards healthier food options.
During the 26 weeks to 2 July, the high street bakery chain saw its total sales grow 6% to £422m with like-for-like sales in its managed stores up 3.8%. Pre-tax profit rose from £25.6m to £29.4m, although it fell slightly to £25.4m when including exceptional items associated with the planned closure of three of its bakery manufacturing sites.
In its results statement, the group said that it delivered good like-for-like growth by reinforcing the freshness and value of its offer in line with changing trends in the food-on-the-go market. It added that its ‘Balanced Choice’ range was seeing strong sales growth amid consumer demand for healthier food choices.
Greggs is also planning to revamp its snacks range in the coming months, introducing its own crisps, nuts and fruit packets, along with its first gluten-free lines.
Meanwhile, Greggs continued to overhaul its shop estate with 86 refurbishments to its latest ‘bakery food-on-the-go’ format. Over the year as a whole, the group plans to update around 200 shops.
During the first half, Greggs opened 68 new shops (including 31 franchise units) and closed 36 shops, giving a total of 1,730 outlets (of which 136 are franchise units) trading at 2 July.
The group added that plans to invest in the development of its supply chain were progressing well with a new distribution facility in Enfield set to be operational in October. This will allow it to complete the closure of its existing Twickenham bakery in the fourth quarter as planned.
Greggs did not comment on Brexit directly but said it was “alert to any change in consumer demand that may result from the current economic uncertainty”. It added: “We remain confident in the quality and value of the Greggs brand and will continue with our long-term strategic investment programme to transform the business from traditional bakery to a growing food-on-the-go brand.”
- Food-to-go via healthy options, with increased like-for-likes
- An enviable progression…
- Are you taking steps to catch up and climb aboard…?