Greggs holds guidance as sales make strong start

14th May 2024 07:52

(Sharecast News) - UK bakery chain Greggs maintained full year earnings forecasts as underlying sales grew 7.4% in the first 19 weeks of this year in what it called a "challenging market".

Total sales rose to £693m from £609m a year earlier, boosted by increases in delivery sales, evening trade and increased usage of the Greggs App. Like-for-like sales in company-managed shops was up 7.4%.

Greggs, famed for its sausage rolls and vegan offerings, said its new over-ice drinks range including coffee, flavoured lemonades and coolers - currently available in 300 shops - was performing well and would now be rolled out to up to 700 outlets in the coming months.

"Pizza boxes have been in strong growth following a dedicated campaign and hot food continues to perform well, with our southern fried chicken goujons and southern fried potato wedges proving popular with customers," Greggs said in a trading statement on Tuesday.

"We also continue to extend our range of healthier choices, introducing the vegetarian pesto and mozzarella pasta and feta and tomato pasta, alongside our award-winning vegan sweet potato bhaji and rice salad bowl."

The company said its cost inflation outlook was unchanged in a range of 4-5% on a like-for-like basis.

"We have made a good start to the year with continued like-for-like growth in a challenging market, reflecting the strength of our strategic plan," Greggs said.

Reporting by Frank Prenesti for Sharecast.com