Greggs reports 5.2% increase in sales but drop in underlying profit

Food-on-the-go chain Greggs has reported a 5.2% increase in sales to £476m during its first half year of trading, alongside a 6.8% drop in underlying profit excluding exceptional charges to £25.7m.

The company, which has nearly 1,900 outlets, said trading to 30 June 2018 had been resilient despite extreme weather conditions and challenging market conditions, with continued growth in new menu items including hot drinks, breakfast, healthier choices and hot food options.

Roger Whiteside, chief executive of Greggs, said: "We have continued to make good progress with our strategic investment programme to transform the business into the customers' favourite for food on the go.

"While we remain cautious in respect of the outlook for sales in the balance of the year given the consumer backdrop, we are confident in the medium and long-term growth potential for the business, supported by customers' response to our initiatives, our strong cash generation and the ongoing strategic investments that we are making.

"Over the year as a whole, we continue to believe that underlying profits (before exceptional costs) are likely to be at a similar level to 2017."

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