Greggs reports 7% sales growth amid challenging market conditions

LONDON - British bakery chain Greggs (LON:GRG) PLC reported a 7% increase in total sales to £1.03 billion for the first half of 2025, despite facing challenging market conditions that impacted profitability, according to a press release statement issued Tuesday.

The food-to-go retailer saw company-managed shop like-for-like sales rise 2.6% while franchised shop like-for-like sales grew 4.8% compared to the same period last year. However, operating profit declined 7.1% to £70.4 million and pre-tax profit fell 14.3% to £63.5 million.

The company cited challenging market footfall, more weather disruption than in 2024, and the phasing of cost headwinds as factors affecting first-half performance. Reduced interest income resulting from cash deployment into the company’s investment program also contributed to the profit decline.

Greggs continued its expansion strategy, opening 87 new shops while closing 56 (including 27 relocations), resulting in 31 net openings during the period. This brought the total estate to 2,649 shops as of June 28, with 564 operated by franchise partners.

"After a challenging start to 2025 we remain clear on the strategic opportunities that lie ahead," said Roisin Currie, Chief Executive. "Through our disciplined estate expansion and focus on innovation, Greggs is evolving its offer further and making the brand more convenient for a wider range of customers."

The company maintained its interim dividend at 19.0 pence per share and reaffirmed that full-year operating profit could be "modestly below" the level achieved in 2024.

Greggs is investing in supply chain capacity with new facilities in Derby and Kettering to support future growth. The company also announced plans to extend its frozen "Bake at Home" range through a new relationship with Tesco (OTC:TSCDY) starting in September 2025.

Evening sales continued to be the fastest-growing daypart, now representing 9.3% of company-managed shop sales compared to 8.4% in the first half of 2024. The Greggs App was used in 25.7% of company-managed shop transactions, up from 18.3% in the same period last year.

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